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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Kiper Retirement Consultants
4015 Southern Parkway
Louisville, KY 40214
Phone: Main Line (502)380-9191

Holly Kiper direct line (502)272-4924
Todd Kiper direct line (502)272-4926

Toll free 1-877-721-5123
Fax: 1(866)664-2415
hkiper@sammonsrep.com

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hkiper@sammonsrep.com