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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Modern-Wealth, LLC
5018 Dorsey Hall Drive, Suite # 204 • Ellicott City, MD • 21042
Phone: 410-528-9100 • Fax: 443-836-0388
www.modern-wealth.com • Jennifer@Modern-Wealth.com

Jennifer R. Lee is a Registered Representative and offers securities products & services through Royal Alliance Associates, Inc. Member FINRA/SIPC, a registered broker-dealer. In this regard, this communication is strictly intended for individuals residing in the states of MD, CA, DE, FL, MA, MN, NV, VA, NJ, NY, PA, IL, GA, . No offers may be made or accepted from any resident outside the specific state(s) referenced.

Jennifer R. Lee is also separately registered as an investment adviser representative under Modern-Wealth, LLC, a registered investment advisor, offering advisory services in the state of Maryland in which the RIA is registered. As such, these services are strictly intended for individuals residing in Maryland.

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