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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Morris, Pool & Associates, LLC Dayton, Ohio Financial Advisors
4489 Far Hills Avenue Kettering, OH 45429
Phone: 937-853-7527 Main
937-853-7529 Mark
937-853-7528 Phil
Fax: (937) 853-7533
charlie@morrispool.net mark@morrispool.net phil@morrispool.net kelly@morrispool.net patty@morrispool.net judy@morrispool.net