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?

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Progressive Financial Planning Services, Inc.
10412 S. Cicero Ave. • Oak Lawn, IL • 60453
Phone: 708-422-3711 • Fax: 708-422-5727
www.progressivefinancial.net • bob@progressivefinancial.net

Advisory Services offered through Investment Advisors, A Registered Investment Advisor and division of ProEquities, Inc.  Securities offered through ProEquities, Inc., a Registered Broker-Dealer and  Member, FINRA & SIPC.  Progressive Financial Planning Services, Inc. is independent of ProEquities, Inc.