CALCULATION OF TAX EFFECTIVE YIELDS FOR DISCOUNT INSTRUMENTS.

The article focuses on the development of an investment model to assist dealers or investors in calculating pricing, tax status, and yield for bond sales. It states that discounted financial instruments often are utilized on a gross, yield-to-maturity basis instead of an after-tax yield basis. It mentions that the majority of tables for interest rates and present value only employ integer values for the maturity date, resulting in the manual method employing the same values and being subject to some level of inaccuracy for the effective after-tax yield and price.