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 marginal tax bracket?

What is the yield (in percentage points) on the municipal bond you are considering?

%
 
   
   
Maxwell Financial Management
300 W. Wilson Bridge Rd., Ste 320
 • Worthington, OH • 43085
Phone: 614.431.4345 • Fax: 614.431.4382
www.maxwellfm.com

 

Please note that any of our non-registered personnel who are referenced cannot offer the products or services of the broker-dealer to a client.

Securities and investment advisory services offered through FSC Securities Corporation, Member FINRA/SIPC, and a registered investment adviser. Maxwell Financial Management is not affliated with FSC Securities Corporation or registered as a broker/dealer or investment adviser.