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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Christian Financial Services
16501 Northcross Drive
Suite A2		 • Huntersville, NC • 28078
Phone: 704-895-5400 • Fax: 704-895-2900
• terry@ChristianFinancialNC.com

Advisory Services provided through Creative Financial Designs, Inc., a Registered Investment Adviser and Securities offered through cfd Investments, Inc., a Registered Broker/Dealer, MemberFINRA & SIPC, 2704 South Goyer Rd, Kokomo, Indiana 46902 (765) 453-9600.  Adviser not licensed in all states.