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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Bowman Asset Management
17011 Kercheval Ave. Grosse Pointe, MI 48230
Phone: (313) 343-0800 Fax: (313) 343-0840
Info@BowmanAsset.com

Securities offered through Sigma Financial Corporation, 300 Parkland Plaza, Ann Arbor, MI 48103, member FINRA and SIPC.
Fee-based investment advisory services offered through Sigma Planning Corporation, a registered investment advisor

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