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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Financial & Tax Strategies
224 Village Square Dr Loudon, TN 37774
Phone: 865-408-2345 Fax: 865-408-2342

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CRagain@CapitalGuardianLLC.com

224 Village Square Dr., Loudon, TN 37774

Phone:  877.408.2345  Fax:  865.408.2342  Email:  CRagain@CapitalGuardianLLC.com

Securities offered through Capital Guardian, LLC, member FINRA/SIPC. Investment advisory services offered through Capital Guardian Wealth Management, an SEC Registered Investment Advisor.