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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Viren and Associates, Inc.
400 South Jefferson, Suite 451 • Spokane, WA • 99204
Phone: (509) 462-0747 • Fax: (509) 838-7641
katie@virenandassociates.com
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*Securities offered through LPL Financial, Member FINRA/SIPC, Investment Advice offered through Strategic Wealth Advisors Group, Inc., a registered investment advisor and separate entity from LPL Financial.