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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My Reliance
3400 Croasdaile Dr., Suite 206 • Durham, NC • 27705
Phone: 919-489-1720 • Fax: 919-489-2786
• info@mybpginc.com

 Reliance Financial Group, Inc. - 3400 Croasdaile Drive, Suite 206 - Durham, NC - 27705
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Reliance Financial Group, Inc. is a fee based registered investment advisory company licensed in the state of North Carolina. The information presented herein is for informational purposes only and does not constitute an offer to sell securities or investment advisory services. Such an offer can only be made in North Carolina or any state where an exemption from notification is currently available under the de minimis exemption rule.
The investment advisor is an independent advisor and receives no compensation from any corporations, brokerage houses, organizations or special interest groups by making recommendations to purchase any of the investment products used. The advisor is a fee-only advisor and receives no commissions for client trades.