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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Target Investment Group

600 Luckie Drive, Ste 305
Birmingham, AL 35223

OR

1030 New Hope Cedar Point Road
New Hope, AL 35760

Phone:
Office: (205) 871-7773
Cell: (205) 914-1542
Fax: (205) 871-7120
william.miller@pesmail.com