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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RJS - Putting Together Your Financial Future - Northwest Chicago CPAs
1655 North Arlington Heights Road, Suite 306 West Arlington Heights, IL 60004
Phone: 847-670-5820 Fax: 847-670-5821

jsimon@rjsimon.com (tax/accounting-related), jared.simon@genworthrr.com (investment-related)