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?

%
 
   
   
FSC Securities Corporation
22 Elm Street Worcester, MA 01608
Phone: 508-831-9500
Toll Free: 800-370-1718
Fax: 508-797-4030


Dudley Office Location


New Lakeside & Dudley Insurance Agency
12 Airport Road
Dudley, MA. 01571

Phone: 508-943-0090
Toll Free: 866-366-6435
Fax: 508-943-3917