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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Bales & Eckel Financial Group
407 E. Maple Place, Suite 201 Cumming, GA 30040
Phone: 770-205-6890 or 770-205-7405 Fax: 770-205-4398
www.bales-eckel.com dbales@bales-eckel.com timeckel@bales-eckel.com

Securities offered through Resource Horizons Group, L.L.C., Member FINRA, SIPC

Advisory services offered through Resource Horizons Investment Advisory, Inc.

1350 Church Street Ext. NE, 3rd Floor, Marietta, GA 30060  Ph: 770-319-1970

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