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?

%
 
   
   
AMBASSADOR FINANCIAL,WARNER RIVIERE
6079 Castle Coakley Christiansted, USVI, 00820
Phone: 340 778 9506 Fax: 340 719-6255
E-mail
wriviere@ambassadorfinancial.net

The above information is being provided strictly as a courtesy. It is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. Ambassador Financial Group, Inc.   encourages you to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.

 

 

 

 

 

 

 

Privacy Policy