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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Stark Financial Strategies
4402 Lawrenceville Road, Ste. 209 Loganville, GA 30052
Phone: (770) 554-9660 Fax: (678) 840-3990
tom@starkfinancial.com

Securities and advisory services offered through Multi-Financial Securities Corporation, member FINRA, SIPC.

Securities and Investment Advisory Services offered through Multi-Financial Securities Corporation (MFSC), Member FINRA/SIPC, a Cetera company. Tom Stark is a registerd representative of MFSC, which is otherwise unaffiliated with Stark Financial Strategies.

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