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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Weldon and Company
2255 Glades Road, Suite 324A Boca Raton, FL 33431
Phone: 954-315-4100 Fax: 954-315-4101
ray.weldon@gsirep.com

 

WELDON & COMPANY REGISERED INVESTMENT ADVISOR, C. RAYMOND WELDON, CLU,ChFC, PRESIDENT.

SECURITIES OFFERED THROUGH AN INDIVIDUAL REGISTERED REPRESENTATIVE OF GIRARD SECURITIES, INC. REGISTERED BROKER/DEALER-MEMBER FINRA/SIPC