Corporate Equivalent Yield

Business, Legal & Accounting Glossary

Definition: Corporate Equivalent Yield


Corporate Equivalent Yield


Full Definition of Corporate Equivalent Yield


Comparison of the after-tax yield of two different bonds, one corporate bond selling at par and one government bond selling at a discount. These are used for comparison because government bonds usually have lower interest rates but are subject to lower – and sometimes nonexistent – taxes, while corporate bonds have higher interest rates but are subject to higher taxes. Calculated by: (after tax yield to maturity)/(1-tax rate).


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Definition Sources


Definitions for Corporate Equivalent Yield are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.