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?

%
 
   
   
WAB&T Financial Services

 

 

 

Securities are offered through ProEquities, a registered broker/dealer. Member FINRA/SIPC. These products are not FDIC insured, are not deposits or other obligations of WABT and are not guaranteed by WABT or any government agency. Securities involve investment risks, including the possible loss of principal.WABT is independent of ProEquities, Inc.