Taxable Equivalent Yield Formula What Is The Formula For Determining Taxable Equivalent Yield On Municipal Bonds Based On Fed. Income Tax Rate?

What is the formula for determining taxable equivalent yield on municipal bonds based on Fed. income tax rate? - taxable equivalent yield formula

make tax-free income and dividing by 1 minus the tax level.

For example, income tax of 5% (coupon)
Your tax bracket 35%
to know the tax equivalent yield loss
5 / 65 (1-.35) = 7.69%

The tax rate for the return of this bond is 7.69% in support of 35% VAT.