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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Financial Partners Group
3610 River Crossing Pkwy
Suite 200
Indianapolis, IN 46240
Phone: 317-573-5100
800-735-4761
Fax: 317-573-5113
www.financialpg.com nasbury@financialpg.com

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Securities products offered by New England Securities Corp (NES), Member FINRA, SIPC. Investment advisory services offered by Investment Adviser Representatives of NES, a Registered Investment Advisor.

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