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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350 Madison Avenue, 2nd Floor • Cresskill, NJ • 07626
Phone: 201-227-4722 • Fax: 201-227-4711
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*Securities and investment advisory services offered through SagePoint Financial, Inc., member FINRA/SIPC and a registered investment advisor.  Athenian Private Client Group Corp. is not affiliated with SagePoint Financial, Inc. or registered as a broker-dealer or investment advisor.