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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GARY I. COX
Gary I. Cox, CFP®
Cox Financial Consulting
15740 State Highway 83
Colorado Springs, CO 80921-1519
Phone: 719-495-8100
or 303-905-0062 Denver Direct
Fax: 719-495-6911
garyicox@walnutstreet.com

Gary I. Cox, CFP® , CERTIFIED FINANCIAL PLANNERTM practitioner, is a Registered Representative and Investment Advisor Representative of and offers securities and investment advisory services through Walnut Street Securities(WSS), member FINRA and SIPC. WSS is a registered investment advisor. Cox Financial Consulting is not an affiliate of WSS.  Securities activities are supervised from Walnut Street Securities, Inc. office at 7400 E. Orchard Rd., Suite 120, Greenwood Village, CO. 80111.  Telephone 720.488.6870.

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