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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Bob Eylander, CFP www.mywealthbuilders.net
2139 US Highway 41 Schererville, IN 46375
Phone: (219) 322-9932 Fax: (219) 322-9936
www.mywealthbuilders.net reylander@mywealthbuilders.net

Midwest Wealth Builders,Inc. is a Registered Investment Advisor, registered in Indiana and Illinois.

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