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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Vest Benefit Solutions
2542 Sunrise Drive


P.O. Box 218		 • Barnhart, MO • 63012
Phone: 636-475-5600


Toll free 866-980-5600		 • Fax: 314-754-8142
• rick@rickvest.com

Richard S. Vest  offers securities and advisory services through Royal Alliance Associates, Inc., member FINRA/SIPC and a registered investment advisor. In this regard, this communication is strictly intended for individuals residing in the states of Missouri, Illinois, Iowa and Nevada. No offers may be made or accepted from any resident outside the specific states referenced.
 

Insurance placed through the Blue Chip Consortium, LLC.  Vest Benefit Solutions and Blue Chip Consortium, LLC are independent of Royal Alliance Associates.

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For information concerning the licensing status or disciplinary history of broker-dealer, investment adviser, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.