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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Commonwealth Capital Management, LLC
10345 Linn Station Road, Suite 200 Louisville, KY 40223-3854
Phone: 502.420.9912 Toll-Free 866.430.4299 Fax: 502.420.9913
www.ccmresource.com scott@ccmresource.com

Securities and Investment advisory services are offered through registered representatives and investment advisor representatives of  Walnut Street Securities, Inc. (WSS). Member FINRA/SIPC, a registered investment advisor. Commonwealth Capital Management (CCM) is not affillated with  WSS
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