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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Navigation Financial Group
15770 N. Dallas Parkway, Suite 650 • Dallas, TX • 75248
Phone: 214-217-5800 or 800-222-5649 • Fax: 214-217-5801
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Advisor Representatives are Registered Representatives of and offer securities through Securities America, Inc., member FINRA/SIPC.

Planning and Advisory Services available through Securities America Advisors, Inc.

Navigation Financial Group and its affiliates are independent of the Securities America companies.