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?

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Lampe & Son Wealth Management
11110 North Eldridge Parkway • Houston, TX • 77065
Phone: (281) 970-4200 • Fax: (832) 685-7210
www.lampeadvisors.com • david@lampeadvisors.com

 

David G. Lampe offers advisory services offered through Investment Advisors, a division of ProEquities, Inc., a Registered Investment Advisor.  Securities offered through ProEquities, Inc. a Registered Broker-Dealer Member, FINRA & SIPC.  Lampe & Son Wealth Management is independent of ProEquities, Inc.    

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