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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Cornerstonewealth
Louis W. Leskosky
345 Kinderkamack Road, Suite B
Westwood, NJ 07675
Phone: 201-383-0630
Fax: 201-383-0633
louis.leskosky@investfinancial.com

John A. Naphor
201 Route 10 East
Succasunna, NJ 07876
Phone: 973-927-7141
Fax: 973-927-7988
john.naphor@investfinancial.com