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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Reagan & James Wealth Advisors - Williamsburg, VA and Irvington, VA

WILLIAMSBURG:
263 McLaws Circle, Suite 101B
Williamsburg, VA 23185
Phone: 757-941-5200
Fax: 757-941-4958
Toll Free: 866-461-3724

IRVINGTON:
4504 Irvington Road
Irvington, VA 22480
Phone: 804-438-9006
chinson@rjwealth.com