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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United Capital Management of Kansas, Inc.
104 E. Iron Salina, KS 67401
Phone: 785.823.7900 or 800.887.2423 Fax: 785.823.7913
ckoehn@sterneagee.com cgiroux@sterneagee.com rkolzow@sterneagee.com dchase@sterneagee.com tmatney@sterneagee.com nbehner@sterneagee.com jareds@sterneagee.com lhuncovsky@sterneagee.com

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