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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Andy Roller
2704 S Goyer Rd • Kokomo, IN • 46902
Phone: 765.453.9600 • Fax: 765.453.9603
• andy@andyroller.com

*Securities are offered through cfd Investments, Inc., a registered Broker/Dealer and are not insured by the NCUA or any other credit union insurance, are not deposits or obligations of the credit union, are not guaranteed by the credit union, and are subject to risk, including possible loss of principal.

Adviser not licensed in all States.  Advisory Services are Provided through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are Offered through cfd Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S Goyer Rd, Kokomo, IN 46902  765.453.9600