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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Masthead Advisors
410 Poplar St; PO Box 355 • Fortville, IN • 46040
Phone: (317) 863-5355 • Fax: (866) 585-5355
• Greg@MastheadAdvisors.com

 

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 South Goyer, Kokomo, IN 46902 (765) 453-9600

 Masthead Advisory Group is not owned or controlled by the CFD companies.