yield equivalence Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “yield equivalence” in the English Dictionary

"yield equivalence" in Business English

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yield equivalencenoun [U]

uk   us   FINANCE
the ​interestrate that an ​investor would need on a ​bond on which ​tax must be ​paid to get the same yield in relation to the ​interestrate for one on which ​tax is not ​paid: To ​achieve after ​taxyieldequivalence she ​needs to ​find a ​qualifieddividendsecurityyielding 12.5%.
(Definition of yield equivalence from the Cambridge Business English Dictionary © Cambridge University Press)
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