An investor in a municipal bond will receive 8 percent interest.He is in a 33 percent tax bracket.The comparable before tax yield on a taxable investment is 14 percent. $$\frac { 8 \% } { ( 1 - .33 ) } = \frac { 8 \% } { .67 } = 11.94 \%$$

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The calculation for the tax-equivalent yield is incorrect. The correct tax-equivalent yield should be calculated as $\frac{8\%}{1 - 0.33} = \frac{8\%}{0.67} \approx 11.94\%$, which is correct, but the statement implies that this is comparable to a 14% taxable yield, which it is not.

An Investor in a Municipal Bond Will Receive 8 Percent 8%(1−.33)=8%.67=11.94%\frac { 8 \% } { ( 1 - .33 ) } = \frac { 8 \% } { .67 } = 11.94 \%(1−.33)8%​=.678%​=11.94%

An Investor in a Municipal Bond Will Receive 8 Percent $\frac { 8 \% } { ( 1 - .33 ) } = \frac { 8 \% } { .67 } = 11.94 \%$