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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certified financial planner CFP investment adviser wealth manager orlando, winter park florida
157 East New England Ave Suite 340
Winter Park, FL 32789
Phone: 407.645.1639 Fax: 407.644.6794

Advisory Services are offered through Michelle Ogden & Company LLC  

157 E New England Ave, Suite 340 Winter Park, FL 32789

Michelle Ogden, CRPS® , CFP® 

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

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