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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AMF Financial Group
112 Westwood Place Suite 100 • Brentwood, TN • 37027
Phone: (615) 251-8121 ~ (877) 791-4033 • Fax: (615) 251-9076

Securities and investment advisory services offered through FSC Securities Corporation, member FINRA/SIPC and a registered investment adviser.  Fixed and/or Traditional Insurance Services offered through AMF Financial Group.  AMF Financial Group is not affiliated with FSC Securities Corporation or registered as a broker-dealer or investment advisor.