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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JSB Financial, LLC Financial Consultants
100 Commerce Boulevard
Suite 100
Wilkes-Barre, PA 18702
Phone: (570) 822-1651 Fax: (570) 822-1652
jbaun@nationsfg.com



 Investment and advisory products and services offered through Nations Financial Group, Inc., Member FINRA/SIPC, a Registered Investment Advisor. JSB Financial, LLC is a separate entity and not affiliated with Nations Financial Group, Inc. Availability of investment services subject to applicable licensing requirements. Please see Disclosures for more details.

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