Business and Personal Finance Dictionary

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• TAXABLE EQUIVALENT YIELD (TEY)
  
  The yield that a tax-free investment would provide to an investor if the tax-free yield was "grossed up" by the amount of taxes not paid. This is the most common way of comparing yields on taxable and tax-free investments. Instead of reducing a taxable yield by the amount of applicable taxes to compare it with a tax-free yield, the tax-free yield is increased by a hypothetical amount of income tax.
  
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