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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The Cumberland Financial Group, LLC.
6250 Hwy 40 E, Suite 3
St. Marys, Georgia 31558

Phone: 1-912-576-3700
Fax: 1-912-576-3709

Also serving Florida
charlie@tcfg-fl.com

mary@tcfg-fl.com

 

Charles Smith is a Registered Representative offering securities through Questar Capital Corporation (QCC), Member of FINRA/SIPC.  Charles Smith is an Investment Advisor Representative offering advisory services through Questar Asset Management (QAM), a Registered Investment Advisor. The Cumberland Financial Group LLC is independent of QCC and QAM.