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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Vinson Associates
1500 Main St., Suite 2514, P.O. Box 15329 • Springfield, MA • 01115-5329
Phone: 413.787.0027 • Fax: 413.734.4328
• peter.vinson@vinsonassociates.com

We have various representatives that are licensed and registered to conduct business in the following states: CO,CT,FL,IA,MA,MD,ME,NC,NH,NJ,NY,OH,PA,RI,SC,TX,VA,VT for non-registered and registered insurance products, as well as securities.

Vinson Associates is independently owned and operated, and offers its own suite of products and services entirely independent of Securian.

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