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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Financial Services in San Diego - Shusterman Financial Services located in Rancho Bernardo
11545 W. Bernardo Court Suite 202 San Diego, CA 92127
Phone: 858-676-3300 Fax: 858-676-3308
ericka@shustermanfinancial.com