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?

%
 
   
   
Black River Financial, LLC
350 Main St. Ste 3 • Bedminster, NJ • 07921-2566
Phone: (866) 776-2290 • Fax: (908) 234-9330
• info@blackriverfinancial.com

Mark Harwanko is a Registered Representative of The Investment Center, Inc.  The Investment Center, Inc. and IC Advisory Services, Inc. are not affiliated with Black River Financial, LLC.  All securities offered through The Investment Center, Inc. Bedminster, NJ, Member FINRA/SIPC.  Advisory services provided through IC Advisory Services, Inc., a Registered Investment Advisor.