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 marginal tax bracket?

What is the yield (in percentage points) on the municipal bond you are considering?

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Kidder Investments & Insurance
P.O. Box 33613 Northglenn, CO 80233
Phone: 303-920-2344 Fax: 303-672-9220
kidderinvestments.pfyfn.com tkidder@walnutstreet.com

 

Todd Kidder is a registered representative and an investment advisor representative of and offers securities and investment advisory services through Walnut Street Securities, Inc. (WSS), member FINRA/SIPC.  Kidder Investments & Insurance is a separate enity from WSS. Securities supervised from a Walnut Street Securities, Inc. office at 7400 E Orchard Rd, Ste 120, Greenwood Village, CO 80111 (720) 488-6870

 

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