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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1752 Financial Solutions
7100 Forest Avenue
Suite 101
Richmond, VA 23226
Phone: 804.441.8468 Fax: 804.441.8465
kgross@1752solutions.com

 

Capitol Financial Solutions, LLC is independent of John Hancock and Signator Investors, Inc.

8816 Six Forks Road , Suite 301 - Raleigh, NC 27615

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