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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Desmon and Kohnstamm Inc.
247 Cayuga Rd. Ste. 100 Buffalo, NY 14225-1900
Phone: 716-633-1808 Fax: 716-633-1834
don@desmonkohnstamm.com christine@desmonkohnstamm.com

Securities and investment advisory services offered through Tower Square Securities, Inc.(TSS)(member FINRA/SIPC), a registered investment advisor. Desmon & Kohnstamm in not affiliated with TSS. Neither TSS nor its representatives offer tax or legal advice. Please consult your tax advisor or attorney for guidance.

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