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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Elsass Financial Group
125 West Boyer Street Wadsworth, OH 44281
Phone: 330.336.9292 or 800.886.8334 Fax: 330.336.1418

Karl Elsass, CFP®, AIF®, CLU®, ChFC®, MBA
Bill Elsass, CLU®, ChFC®, CASL®, LUTCF


132 South Broad Street, Suite 202
Canfield, OH 44406

Phone: 330.702.9950 or 866.702.8334
Fax: 330.702.9951

Kevin Chiu, CFP®, AIF®, ChFC®, MBA


125 West Boyer St. Wadsworth, OH 44281 Tel: 330-336-9292 Fax: 330-336-1418 Email: info@elsass-efg.com Securities offered through Cambridge Investment Research, Inc., (CIR) a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. CIR, SFCU, C1CU and Elsass Financial Group are not affiliated. Non-deposit investment products: are not FDIC or NCUA insured • are not obligations of or guaranteed by the credit union • involve investment risk and may lose value. Office of Supervisory Jurisdiction located at: 125 W. Boyer, Wadsworth, OH 44281 Phone: 330.336.9292