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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Leading Edge Financial Group
4673 W. 20th St. Unit E Greeley, CO 80634-3226
Phone: 970-356-8162 Fax: 970-353-9930
scott.rankin@wilsec.com

Securities offered through and supervised by Wilbanks Securities, Inc. Member FINRA SIPC 4334 NW Expressway, Suite 222, Oklahoma City, OK 73116. 405-842-0202.