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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Daniel J. Galli & Associates
101 Longwater Circle, Suite 201 • Norwell, MA • 02061
Phone: (781) 878-2322 • Fax: (781) 878-6618
• info@djgalli.com

 

Securities and investment advisory services offered solely through Ameritas Investment Corp. (AIC).  Member FINRA/SIPC.  AIC and Daniel J. Galli & Associates are not affiliated.  Additional products and services that are not offered through AIC may be available through Daniel J. Galli or Daniel J. Galli & Associates

 

 

Licensed for insurance sales in (MA, RI, NH, WA).

Licensed for securities sales in (CA, CT, FL, MA, MD, ME, MI, MO, NC, NH, NY, OR, PA, RI, SC, TX, WA).

 

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