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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ING Financial Partners.
7000 E. Genesee St Bldg D • Fayetteville, NY • 13066
Phone: 315-431-6364 888-883-6320 • Fax: 315-437-5080
• kenneth.walcyk@ingfp.com

Registered Representative of & Securities and Investment Advisory Services Offered Through ING Financial Partners. Member SIPC. Walcyk Financial Services is not a subsidiary of nor controlled by ING Financial Partners.