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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New Horizons Financial Group
2404 Windsor Place • Champaign, IL • 61820
Phone: (217) 359-7100 • Fax: (217) 239-7100
• Gmickle@nhfg.org

Securities and advisory services offered through SagePoint Financial, Inc., a Registered Broker Dealer  Member FINRA/SIPC  and SEC registered investment advisor.  New Horizons Financial Group is a separate entity from SagePoint Financial, Inc., or registered as a broker dealer or investment advisor.

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