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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Benchmark Financial Group, Inc.
1900 NW Expressway Suite 1200 • Oklahoma City, OK • 73118
Phone: 405-840-0028 • Fax: 405-840-0014
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Securities and Advisory Services offered soley through Ameritas Investment Corp. (AIC). Member FINRA, SIPC. AIC and Benchmark Financial Group, Inc. are not affiliated.  Additional products and services are available through Benchmark Financial Group, Inc. that are not offered through AIC.