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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JL Davis Financial - Denver Investment Advisors | Denver Financial Advisor | Denver Financial Planner
8000 E. Prentice Avenue, Suite C6 Greenwood Village, CO 80111
Phone: 303 691-3827 Fax: 303 691-3824
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