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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Michael Moffitt - Cornerstone Financial Group
604 W. Adams St. (Branch Office) • Creston , IA • 50801

641-782-5577

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2910 Westown Parkway,
Suite 300
West Des Moines, IA 50266

515-251-4515,




Or 800-827-5577 throughout Iowa

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• Fax: 641-782-4104
• mikem@cfgiowa.com

Information contained herein is based on sources believed reliable, but is not guaranteed and is not to be construed as an offer or the solicitation of an offer to buy or sell products mentioned herein.


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