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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The Forbes & Thompson Wealth Management Group of Wells Fargo Advisors
One Independent Drive, Suite 2400 Jacksonville, FL 32202
Phone: Barbara Schroeder (904) 351-7608

Belinda Abrams (904) 351-7622

Tom Forbes (904) 351-7643

John Thompson (904) 351-7654

Toll Free (800) 342-0689
Fax: 904-351-7601
barbara.schroeder@wfadvisors.com