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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RISING OAK Financial
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Phone: 510-834-4488 Fax: 510-834-4484
info@risingoakfinancial.com

 

Harold Lowe is a Registered Representative and Investment Advisor Representative of and offers securities and advisory services through Symetra Investment Services, Inc.  DBA in the state of CA as SIS Financial & Insurance Services, 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004. 800-469-7667.  Member FINRA/SIPC, Broker/Dealer and an SEC Registered Investment Advisor. Rising Oak Financial is not a subsidiary or an affiliate of Symetra Investment Services, Inc. or SIS Financial & Insurance Services.

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