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?

%
 
   
   
Zey Insurance Group
11835 West Olympic Boulevard Suite 745 Los Angeles, CA 90064
Phone: (310) 477-0694 Fax: (310) 477-1444

© 2008 Zey Insurance Group

11835 West Olympic Boulevard • Suite 745 • Los Angeles • CA • 90064

Tel: (310) 477-0694 • Fax: (310) 477-1444

 

 

Privacy Policy