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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Horizon Financial Resources
211 State Street Guthrie Center, IA 50115
Phone: 641-332-2355 Fax: 641-332-2358
timothyobrien@tfamail.com lbrandt@tfamail.com

Securities offered through Transamerica Financial Advisors, Inc. (TFA),member FINRA, SIPC. Non-securities products and services are not offered through TFA. TFA and Horizon Financial Resources LLC are not affiliated.

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