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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KAF Financial Advisors
10 Forbes Road West
Third Floor
Braintree, MA 02184
Phone: 781-356-2000 Fax: 781-380-3833
info@kafgroup.com

 

 

 

Securities and Investment Advisory Services offered through Capital Analysts Incorporated: Member FINRA / SIPC .  Capital Analysts Incorporated and KAF are independent non-affiliated entities.

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