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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Hanzlik Financial Services
950 N Highway 95 Bayport, MN 55003
Phone: (651) 351-3776 or (800) 848-4897 Fax: (651) 439-3835
rich@hanzlikfinancial.com

Hanzlik Financial Services and its affiliate(s) CRI Securities, LLC are independently owned and operated, and offers its own suite of products and services entirely independent of Securian.

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