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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Bonebrake Financial Planning and Investments
100 W 13th Ave Ste 200 Eugene, OR 97401
Phone: Eugene: 541-868-3800 Roseburg: 541-673-0251
Toll Free: 888-590-1824
Fax: 541-485-0755
david@bonebrakefinancial.com

Securities offered through Securities America, Inc., Member FINRA/SIPC.  Advisory services offered through Securities America Advisors, Inc.  Bonebrake Financial Planning & Investments is not an affiliated entity of the Securities America companies.