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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Southwest Financial Services, LLC, Beaverton, OR
8285 SW Nimbus Ave., Suite 191 • Beaverton, OR • 97008
Phone: (503) 620-7100 • Fax: (503) 620-7110
• dawn@sw-accounting.com

Susan Gilman is a registered representative registered to transact business with clients in Oregon, Washington, California, Pennsylvania, Texas and Florida. Susan Gilman is advisory licensed in the following states: Oregon, Washington, California, and Pennsylvania.  Susan Gilman is also an insurance agent licensed in Oregon, Washington and Florida. If you are not a resident of the states noted above, all investment-related information on this site is for informational purposes only and does not constitute a solicitation or offer to sell securities or insurance services over the internet. Securities offered through H.D. Vest Investment ServicesSM, Member: SIPC, Advisory Services offered through H.D. Vest Advisory ServicesSM, 6333 North State Highway 161, Fourth Floor, Irving, TX 75038, 972-870-6000.

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Southwest Financial Services, LLC is not a registered broker/dealer or independent investment advisory firm.