Business Glossary
SEARCH THE BUSINESS GLOSSARY
Business Definition for: aftertax basis
aftertax basis
basis for comparing the returns on a corporate taxable bond and a municipal tax-free bond. For example, a corporate bond paying 10% would have an aftertax return of 6.5% for someone in the 35% tax bracket. So any municipal bond paying higher than 6.5% would yield a higher aftertax return.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
