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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Financial Strategies Group
1220 28th Avenue North Fargo , ND 58102
Phone: (701) 234-0103 Fax: (701) 234-0106
Doug Schmitz Beth Boechler

Securities Offered Through NorhtStar Financial Partners (NSFP) Member FINRA/SIPC.  Advisory Services Offered Through Financial Strategies Group, Inc (FSG) A Registered Investment Advisor. FSG is independent of NSFP.
 

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