Examlex
Which of the following word pairs are mismatched?
Tax Exempt Equivalent Yield
A calculation that determines the return needed on a taxable bond to make it equivalent to the yield on a tax-exempt bond, factoring in the investor's tax rate.
Marginal Tax Rate
The amount of tax paid on an additional dollar of income.
Bond Yield
The return an investor realizes on a bond, calculated by dividing the annual interest payments by the current market price of the bond.
Equally Weighted Index
An equally weighted index is a stock market index in which each constituent stock contributes equally to the index's value, regardless of the company's market capitalization.
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