## What is the tax equivalent yield formula?

Tax-equivalent yield = interest rate ÷ (1 – your tax rate) You would perform the following calculation if you want to know the real rate of return on a nontaxable municipal bond—the rate that would be equivalent on a taxable bond.

### What is an equivalent yield?

Equivalent Yield (true and nominal) is a weighted average of the Net Initial Yield and Reversionary Yield and represents the return a property will produce based upon the timing of the income received. The true equivalent yield assumes rents are received quarterly in advance.

**What does ### in a spreadsheet cell indicate?**

Excel spreadsheets display a series of number or pound signs like ##### in a cell when the column isn’t big enough to display the information. It also happens if you have a cell formatted to display something different than what you need the spreadsheet to show.

**What is equivalent yield in valuation?**

The equivalent yield is defined as the internal rate of return of the cashflow from the property, assuming a rise to ERV (estimated rental value) at the next review but with no further rental growth. It will always lie between the initial yield and the yield on reversion.

## How do you calculate the yield on a property?

Working out the rental yield for a property is very easy to do. Simply divide your rental income by the property value and then multiply it by 100 to get your rental yield expressed as a percentage.

### Is yield the same as interest rate?

Yield is the annual net profit that an investor earns on an investment. The interest rate is the percentage charged by a lender for a loan. The yield on new investments in debt of any kind reflects interest rates at the time they are issued.

**What is the difference between equivalent and equated yield?**

Equated yield The internal rate of return of a growth explicit cash-flow, see target rate of return. Equivalent yield Single yield that can be used to capitalise both the term and reversionary incomes.