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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ANN C. SWIFT & ASSOCIATES
1039 West Mason Street
Green Bay, WI 54303
Phone 920-490-8630
Fax 920-490-8631

351 Highway 51
Arbor Vitae, WI 54568
Phone 715-358-9900
Fax 715-358-9491
ann@anncswift.com