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 marginal tax bracket?

What is the yield (in percentage points) on the municipal bond you are considering?

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Security First Advisors Corvallis, Inc.
2657-B NW Rolling Green Dr. • Corvallis, OR • 97330
Phone: (541) 757-1114 • Fax: (541) 704-2153
www.sfacorvallis.com • antone@sfacorvallis.com
Securities offered through Securities America, Inc., Member FINRA/SIPC 
Antone Gatherum Registered Principal and advisory services offered through Securities America Advisors, Antone Gatherum, Investment Advisor Representative. Security First Advisors Corvallis, Inc. and Securities America Unaffiliated