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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Jerry W. Wilk, P.F.P. Financial, Investment & Retirement Planning in Irvine, CA
17848 Skypark Circle Irvine, CA 92614-6401
Phone: (949) 250-9990
(800) 316-3138
Fax: (949) 250-9992
jerry.wilk@natplan.com

All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy.

Jerry W. Wilk is a Registered Representative. Securities and advisory services offered through NATIONAL PLANNING CORP.  (NPC), NPC of America in FL & NY, member FINRA/SIPC, a Registered Investment Adviser. Registered Representatives of NPC may transact securities business in a particular state only if first registered, excluded or exempted from Broker-Dealer, agent or Investment Adviser Representative requirements. In addition, follow-up conversations or meetings with individuals in a particular state that involve either the affecting or attempting to affect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made absent compliance with state, Broker-Dealer, agent or Investment Adviser Representative registration requirements, or an applicable exemption or exclusion.

 


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