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?

%
 
   
   
Thomas A. Wittkopf
541 Central Ave • Florence, WI • 54121
Phone: 715-528-4844 • Fax: 715-528-4986

Mailing Address
PO Box 500
Florence, WI 54121
www.coppertopfinancial.com • tom.wittkopf@siionline.com

 SII Investments, Inc., member FINRA, SIPC and a Registered Investment Advisor is not affiliated with State Bank of Florence or Coppertop Financial . Securities and advisory services offered through SII Investments, Inc. are *not insured by the FDIC or any other Federal Government Agency *not a deposit or other obligation of, or guaranteed by any bank or their affiliates *subject to risks including the possible loss of principal amount invested.


SII Privacy Policy