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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R S Palastro Financial Planning Services, Inc.
1440 - 61 Street Brooklyn, NY 11219-5407
Phone: 718-633-9500 Fax: 718-438-0570
rpalastro@walnutstreet.com

Ron Palastro is a registered representative and investment advisor representative of and offers securities and investment advisory services through Walnut Street Securities, Inc. (WSS) Member FINRA / SIPC.  Financial Planning offered through R.S. Palastro Financial Planning Services.    R.S. Palastro Financial Planning Services is not affiliated with WSS.

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