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?

%
 
   
   
Shield Financial Solutions
2600 East Bidwell Street, Suite 260 • Folsom, CA • 95630
Phone: (916)369-0878 • Fax: (916)985-3376
• dave@shieldfinancialsolutions.com

Securities offered through Securites America Inc., a Registered Broker/Dealer Member FINRA/SIPC and Advisory Services offered through Securities America Advisors Inc., an SEC Registered Investment Advisor, David Hartman, Representative. CA Insurance Lic # 0B52518. Shield Financial Solutions and the Securities America companies are not affiliated. Securities licensed in AL, AZ, CA, CO, FL, ID, MO, NY, VA, WA.  Advisory licensed in CA. Insurance licensed in CA.