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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Thornton Wealth Management, LLC.
1701 Lee Ave. Fort Worth, TX 76164
Phone: 817-625-3911 Fax: 817-625-0504
info@thorntonwm.com

 

Securities and Advisory Services Offered through VSR Financial Services, Inc., Member FINRA, SIPC, A Registered Investment Adviser, Thornton Wealth Management is independent of VSR.

Anthony Thornton is a Registered Representative with VSR Financial Services, Inc., a FINRA Registered Broker-Dealer. While VSR Financial Services, Inc. is registered to sell securities products in all 50 United States and the District of Columbia, Anthony Thornton,is currently registered to sell securities products in Texas.

 

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