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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George R. Pierce & Assoc.
1200 Westlake Avenue N Suite 707 Seattle, WA 98109
Phone: (206) 281-7700 Fax: (206) 281-8930
www.georgerpierce.com grp@georgerpierce.com

Securities offered through LPL Financial, Member FINRA/SIPC

George R. Pierce & Associates, LLC is a registered investment adviser in the State of Washington.  The adviser may not transact business in states where it is not appropriately registered, or excluded or exempted from registration.  Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.