For those in a 33 percent bracket, the equivalent yield would have to be 8.93 percent.

You can buy 20- to 30-year bonds at yields equivalent to taxable Treasuries.

The equivalent yield, r, on the TB is given by.

The taxable equivalent yield on the bond due in 2013 is 8.55 percent at the current top tax rate of 31 percent.

The inputs for the four bills are their bond equivalent yields.

For an investor in the 36 percent Federal tax bracket, the bonds offer equivalent yields of 9.89 percent.

The equivalent yield would be 5.25, divided by 0.64 (1 minus 0.36).

When the state tax is added to the Federal tax, taxable equivalent yields become even larger.

If the tax rate goes to 36 percent, that taxable equivalent yield jumps to 9.38 percent.

The taxable equivalent yield in the 36 percent tax bracket is 9.04 percent.