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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Legacy Financial Associates, Ltd.
5171 Wallings Road, Suite 130 North Royalton, OH 44133
Phone: 440-237-8000 Fax: 440-237-8002
pmartin@multifin.com

Securities and advisory services offered through Multi-Financial Securities Corporation, member FINRA, SIPC.

5171 Wallings Road, Suite 130, North Royalton, OH 44133

 

Legacy Financial Associates, Ltd. and Multi-Financial Securities Corporation are not affiliated companies.

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