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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Securities America
701 Devonshire Dr. Champaign, IL 61820
Phone: (217)356-6533 Fax: (217)356-6577
www.lesterfinancialgroup.com todd@lesterfinancialgroup.com
Securities offered through Securities America, Inc.  Member FINRA & SIPC.  Advisory services offered through Securities America Advisors, Inc.  Todd Lester, Representative. Lester Financial Group is not affiliated with the Securities America companies.
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Representatives of Lester Financial Group are licensed to offer insurance for the following states: IL, KS & OH