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 marginal tax bracket?

What is the yield (in percentage points) on the municipal bond you are considering?

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Strategic Capital Advisors, Inc.
www.scacfp.com

 


 



 


 
 


 Securities and investment advisory services offered through FSC Securities Corporation, a registered broker-dealer member of FINRA and SIPC. Additional Advisory services offered through Strategic Capital Advisors, a registered investment advisor not affiliated with FSC Securities Corporation.