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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Randy Rathmann - www.randyrathmann.com
2707 Artie Street Bldg. 200, Suite 12 Huntsville, AL 35805
Phone: 256-536-7320 Fax: 256-536-7449
www.randyrathmann.com
Investment Advisor Representative of Investment Advisors, a Registered Investment Advisor and a division of ProEquities, Inc. Securities offered through ProEquities, a Registered Broker-Dealer, Member FINRA & SIPC.
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