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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CORE Financial Advisors, www.cfaonline.com
1918 Business Center Drive, Suite 110 San Bernardino, CA 92408
Phone: (909)382-4545 Fax: (909)382-4563
core@cfaonline.com

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GBS Financial Corp
558 "B" Street • Santa Rosa, California 95401