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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Budd, Melone & Company, LLC
Budd, Melone & Co. LLC MI Office
3121 University Drive
Suite 180
Auburn Hills, MI 48326
248-499-8704
Fax 248-499-8721

Budd, Melone & Co. LLC TN Office
725 Cool Springs Blvd.
Suite 600
Franklin, TN 37067
615-567-3056
Fax 615-567-3086
Phone:
Toll Free 877-293-5830


lmelone@wfafinet.com jbudd@wfafinet.com mlanderson@wfafinet.com