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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Affinity Advantage Financial
633 Rt. 211 East • Middletown, NY • 10941
Phone: 845-695-1000, x202 • Fax: 845-695-2079
• tomammons@affinityadvantage.com

 

 

 

 

 

 

 

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• Are not insured by the FDIC or by any federal government agency

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• May lose Value

All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.  

 

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