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?

%
 
   
   
Stegent Equity Advisors, Inc.*
24 Greenway Plaza, Suite 515 Houston, TX 77046
Phone: 713-840-9300x4 Fax: 713-840-0012
Loyd@stegentequity.com

Registation as an investment advisor with the SEC or State of Texas does not require or imply any level of experience or expertise.

Stegent Equity Advisors, Inc. is not a CPA firm.

 

Privacy Policy