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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KeyBridge Insurance Services, Inc.
520 North 30th Street, Suite 16 Quincy, IL 62301
Phone: 217-223-5102 or toll free: 866-388-5102
Cell: 217-242-7162
Fax: 217-223-5170
matroup@adams.net

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