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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www.carlrogers.com
5821 Fairview Rd Suite 208 Charlotte, NC 28209
Phone: (704) 494-7070 Fax: (704) 405-9946
www.carlrogers.com cerogers@aicinvest.com

Carl E. Rogers, Jr. is insurance-licensed in NC, SC, FL and VA and is an Investment Advisory Representative. Securities and investment advisory services offered through Ameritas Investment Corp. (AIC), member FINRA, SIPC.  Rogers and Associates and AIC are not affiliated.