Mr. Paulsen says after-tax yields on Treasuries stand at twice the average since 1920.

At the 36 percent tax rate, the after-tax yield on the city's bond is 8.98 percent.

"I'd sit down with a pencil and paper and figure out the after-tax yield," one fund manager advised.

At the proposed 36 percent tax rate, the bonds' after-tax yield would be 7.87 percent.

She refuses to buy tax-free municipal bonds, which generally have a higher after-tax yield.

The after-tax yield for an investor in the 30 percent tax bracket is 6.53 percent.

While the capital gain on a bond has not been as good, the after-tax yields these investors are earning are still robust.

The after-tax yield on utilities, compared with Treasury bond yields, remains higher than the historical average, he said.

But with dividend taxes reduced to 15 percent, the executive in this example has an after-tax yield of 2.81 percent.

To find the after-tax yield, divide the actual yield by one minus your tax rate.