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 marginal tax bracket?

What is the yield (in percentage points) on the municipal bond you are considering?

%
 
   
   
Telhio Credit Union
Phone: (614) 221-3233 Option 6, Option 2 • Fax: (614) 222-6949
www.Telhio.pfyfn.com • Send A Secure E-Mail

Products and services offered through CUSO Financial Services, L.P. (CFS), an independent broker/dealer, are not NCUA/NCUSIF Insured, not credit union guaranteed, and may lose value. Financial Representatives are employees of Telhio Credit Union and registered through CFS (member FINRA/SIPC), and SEC Registered Investment Advisor.  For specific tax advice, consult a qualified tax professional.