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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Carlson Financial Strategies "Trustworthy and Experienced"
Cliff Cove Town Offices
2418 117th Street East
Burnsville, MN 55337
Burnsville, MN 55337
Phone: 952-646-9225 Fax: 952-646-9227
jim@jimcarlson.com

Securities offered through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way, Cincinnati  OH 45242 (513) 794-6794.   Investment advisory services offered through O.N. Investment Management Company.

Jim Carlson is licensed to sell insurance and annuity products in Minnesota and Wisconsin.

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