Taxable Equivalent Yield  

Municipal bonds are sold by cities, counties, states and other political bodies (public hospital, school district).

The federal government and its agencies do not sell municipal bonds. However, most municipals are free of federal taxes. Because of this, the stated interest rate on municipals is typically lower than comparable non tax-exempt bonds.

How much would you have to receive from a taxable bond to realize an equivalent yield? You can find the answer by entering the following information:

     


What is your federal income tax bracket?

What is the yield (in percentage points, 0 to 10 percent) on the municipal bond you are considering?

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Jeffrey Moore RFC, LUTCF - Financial Planning Alternatives
1125 State Rd Westport, MA 02790
Phone: 508-636-6521 Fax: 508-636-6524
jeff@fpa-online.com
Securities and Investment Advisory Services offered through Capital Analysts Incorporated. Member FINRA/SIPC.  Capital Analysts of New England and Capital Analysts Incorporated are independent non affiliated entities.

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