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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Jane Coralluzzo
1007 Mantua Pike, Suite 3 • West Deptford, NJ • 08096
Phone: 856-853-7368 CPA/Accounting Services
856-853-4222 Securitiies/Financial Services

 

*Securities and investment advisory services offered through SagePoint Financial, Inc., member FINRA/SIPC and a registered investment advisor. CORALLUZZO PC  is not affiliated with SagePoint Financial, Inc.  Inc. or registered as a broker-dealer or investment advisor.

 

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