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?

%
 
   
   
Prosperity Planning - Independent Financial Advice - Kansas City Northland
Prosperity Planning, Inc.
Briarcliff Professional Plaza
1805 NW Platte Road, Suite 100
Kansas City, MO 64150
Phone: (816) 587-7526 Fax: (816) 587-0960
info@prosperityplanninginc.com