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?

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Strategic Financial Group
11600 Manchester Road, Suite 100 St. Louis, MO 63131
Phone: 314-238-0200 Fax: 314-238-1129
www.StrategicFinancialSTL.com dreed@walnutstreet.com

 


 

Securities and Investment Advisory services offered through Walnut Street Securities, Inc. (WSS) a broker/dealer (member FINRA/SIPC) and a Registered Investment Advisor. Strategic Financial Group is a separate entity from WSS.
 
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