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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SSB Financial Services
242 N. Michigan Avenue Shelby, MI 49455
Phone: 231.861.6053 Fax: 231.861.2468
james.stovall@LPL.com
LPL Financial is an independent, registered broker/dealer and registered investment adviser.  Member SIPC/FINRAFor a comprehensive review of your personal situation, always consult with a tax or legal Advisor. Neither LPL Financial, nor any of its representatives may give legal or tax advice.