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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The Junk Investment Group
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Phone: (410) 584-8100
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Securities offered through Securities America, Inc., Member FINRA/SIPC, I. Richard Junk, CFP®, CLU, Registered Principal, and Cassandra Junk and Michael Junk, CFS, Registered Representatives. Advisory services offered through The Junk Investment Group. I. Richard Junk, Cassandra Junk, and Michael Junk, Investment Advisor Representatives. The Junk Investment Group and Securities America, Inc. are separate entities.