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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Hillgen-Santa Financial Group, LLC
2336 Main Street Stratford, CT 06615-5973
Phone: (203) 380-1118 Fax: (203) 377-5585
mshs@h-sfg.com

© 2011 Hillgen-Santa Financial Group, LLC.    All rights reserved.

Michael Hillgen-Santa is a Registered Representative and Investment Advisor Representative offering Securities and Investment Advisory Services through H. Beck, Inc., Member FINRA, SIPC

H. Beck, Inc. and Hillgen-Santa Financial Group, LLC are not affiliated.

Licensed to offer securities in the States of Connecticut, New York, New Jersey, Pennsylvania, Florida and Virginia. Licensed to offer insurance products in the States of Connecticut, New York, New Jersey, Florida and Virginia. This is not an offer to sell or solicit securities in any other state or jurisdiction.

 

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