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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Information on this website is intended for general informational purposes only and should not be considered investment advice, nor should it be relied upon when preparing legal or tax documents. McWilliams Financial is not a licensed tax preparer and does not provide specific legal or tax advice. Information is collected from sources believed to be reliable, but has not been verified for accuracy or completeness. California insurance license number 0682214. Insurance and annuity guarantees are based on the claims paying ability of each insurance company. Securities offered through Pacific West Securities, Inc., member FINRA, SIPC. Advisory services provided through Pacific West Financial Consultants, Inc, a registered investment advisor. CDARS and Certificate of Deposit Account Registry Service are registered service marks of Promontory Interfinancial Network, LLC