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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Design Underwriting , Inc.
985 Parchment Dr., SE Grand Rapids, MI 49546
Phone: (616) 957-3380 Fax: (616) 957-0343
www.designunderwriting.com ed.thauer@oasecurities.com

Registered Representatives of and securities offered through OneAmerica Securities, Inc., Member FINRA, SIPC, a Registered InvestmentAdvisor, Insurance Representative of American United Life Insurance Company® (AUL)  and other insurance companies. Design Financial Group is not an affiliate of OneAmerica Securities or AUL and is not a broker dealer or Registered Investment Advisor.

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