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 Planning - Columbus, Ohio - Lucas Financial Services Inc
947 Worthington Woods Loop • Worthington, OH • 43085
Phone: 614-840-9770 • Fax: 614-840-9773
• scott@lucasfinancialservices.com

Advisory Services offered through Investment Advisors, a division of ProEquities, Inc.  A Registered Investment Advisor.  Securities offered through ProEquities, Inc.  A Registered Broker/Dealer, Member FINRA/SIPC.  Lucas Financial Services, Inc. is independent of ProEquities.

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