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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Romano Buonadonna Financial Services, LLC
Vineland Office
150 S. Main Road
Vineland, NJ 08360
Phone: (856) 692-9103
Fax: (856) 794-8862

Millville Office:
10 E. Main Street - Suite E
Millville, NJ 08332
Phone (856) 825-9943
Fax (856) 825-0417
info@rbfsonline.com

Securities offered through CPI Capital - Member FINRA/SIPC www.finra.org  www.sipc.com


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