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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Vorisek Financial Corp
300 West Wilson Bridge Road
Suite 320		 • Worthington, OH • 43085
Phone: 614.431.4328
Toll Free: 866.542.2068		 • Fax: 614.431.4382
• smunro@fscadvisor.com

*Securities, investment advisory services and Insurance offered through FSC Securities Corporation, member FINRA/SIPC and a registered investment advisor. Insurance services offered through Vorisek Financial and is not affiiliated with FSC Securities Corporation or registered as a broker-dealer or investment advisor. 

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