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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Vineyard Financial Group
Vineyard Financial Group
8655 E. Via de Ventura, Suite F166		 • Scottsdale, AZ • 85258
Phone: 480.282.4882
• Fax: 480.718.8187
• pbergan@vineyardfinancialgroup.com sbergan@vineyardfinancialgroup.com

Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC.  Registered to sell securities in AZ, CA, CO, ID, PA and WA.

Investment Advisor Representative, Advisory Services offered through Cambridge Investment Advisors, Inc., a Registered Investment Advisor. 

Cambridge and Vineyard Financial Group are not affiliated.