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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Financial Visions LLC
1055 N. 115th St, Suite: 200 Omaha, NE 68154
Phone: (402) 827-5547 Fax: 402-934-4107
Dale.Percival@financialvisionsllc.com Ben.Koley@financialvisionsllc.com Cathy.Wyatt@financialvisionsllc.com Jennifer.Bartelt@financialvisionsllc.com

Securities offered through Centaurus Financial Inc.  Member FINRA/SIPC (www.finra.org / www.sipc.org). 1055 N 115th St., Suite 200, Omaha, NE 68154, (402) 827-5547.  Centaurus Financial Inc. and Financial Visions LLC are not affiliated.