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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Securus Financial Strategies
33595 Bainbridge Rd., Ste 104 Solon , OH 44139
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wrusso@americanportfolios.com

Securities offered through American Portfolios Financial Services, Inc. Member FINRA, SIPC. Advisory Services offered through American Portfolios Advisors, Inc a SEC Registered Investment Advisor. Securus Financial Strategies is independent of American Portfolios Financial Services, Inc. and American Portfolios Advisors Inc.

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