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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Golden Wealth Solutions
Matt Cloutier, RFC 303-463-6800 ext. 238, Michael Herman, ChFC 303-456-1913
• mike.gws@adviserfocus.com matt.gws@adviserfocus.com


Mike Herman is a registered representative and investment adviser representative of Mutual of Omaha Investor Services, a securities broker/dealer and registered investment adviser.  Home Office:  Mutual of Omaha Plaza, Omaha, NE 68175-1020.  Member FINRA/SIPC. There is no contractual relationship between Golden Wealth Solutions and Mutual of Omaha Investor Services.