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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Neal Financial Group LP
1770 St. James Place Suite 360 Houston, TX 77056
Phone: 713-880-5337 or Toll free 866-880-5337 Fax: 713-880-5748
Mail@NealFinancial.com

Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC