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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Investment Center located at Clear Lake Bank & Trust
322 Main Avenue Clear Lake, IA 50428
Phone: 641-357-7106
talexander@eagleoneinvestments.com

Securities Offered through Eagle One Investments, LLC Member FINRA/SIPC.

NOT A DEPOSIT - NOT FDIC INSURED - NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY 

- NOT GUARANTEED BY THE BANK - MAY GO DOWN IN VALUE