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 marginal tax bracket?

What is the yield (in percentage points) on the municipal bond you are considering?

%
 
   
   
The Asset Consulting Group, Inc.
410 S Orchard, Suite 112 • Boise, ID • 83705
Phone: (208) 333-9922 • Fax: (208) 386-9814
www.assetconsultinggroup.com • 401k@assetconsultinggroup.com

Mutual Funds, annuities, stocks, and other investments available through Financial Telesis, Inc. are not insured by the FINRA, SIPC nor are they obligations of or guaranteed by Financial Telesis, Inc. or any other affiliated entity. Such investments will fluctuate in value and are subject to investment risks including loss of some or all of the principal.

Before proceeding further, please be advised that Financial Telesis, Inc., an SEC Registered Investment Advisor is currently licensed in all 50 states to provide investment advisory services.

Securities offered through Financial Telesis,Inc. Member FINRA/SIPC.

Financial advice offered through Financial Telesis, Inc., an SEC Registered Investment Advisor.