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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Burns Investment Group/Wells Fargo Advisors Financial Network
Farmington Hills Office
27555 Executive Drive, Ste 175
Farmington Hills MI 48331

Naples Office
850 Park Shore Drive, Ste 200
Naples FL 34103
888-363-4546 Phone 855-553-4600 Fax
BurnsInvestmentGroup@wfafinet.com