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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Kevin W. Conroy CFP ®
1200 South College Ave Suite 210 Fort Collins , CO 80524
Phone: 970-226-2983 Fax: 970-223-7391
www.iraspecialist.com kevin@iraspecialist.com
Phone: 1-800-776-4257

Securities offered through: Linsco/Private Ledger Member FINRA, SIPC and a Registered Investment Advisor. Retirement Funding Specialists and Linsco/Private Ledger are separate and unrelated companies. Linsco/Private Ledger does not provide tax or legal advice.

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