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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Leader Financial Services
350 S. Main Street, Suite 107 Doylestown, PA 18901
Phone: 215-340-2600 Fax: 215-340-2606
leader@leaderfinancialservices.com
Investment advisory services are offered through Registered Investment Advisor, Gwynedd Company, 1100 Sumneytown Pike, Lansdale, PA 19446 (215-855-1630) and registered products, annuity and insurance through Rampart Financial Services, Inc., 2005 Easton Road, Doylestown, PA 18901 (215-880-1640) member FINRA, SIPC . Leader Financial Services and The Leader Company are not owned or operated by Gwynedd Company or Rampart Financial Services, Inc.

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