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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JOHN LISTER INC, PC
304 Cove Terrace Shopping Center Copperas Cove, TX 76522
Phone: 254-547-0773 Fax: 254-547-1667
www.JohnLister.com john@johnlister.com

 

 John Lister is a registered representative registered to transact business with clients in Alabama, Florida, Georgia, Maine, Massachusetts, Missouri, North Carolina, Ohio, Oklahoma, Texas and Washington.  John is also an insurance agent licensed in Texas.   Nadine Feild is a registered representative registered to transact business with clients in Alabama and Texas.  Nadine is also an insurance agent licensed in Texas. 

If you are not a resident of the states noted above, all investment-related information on this site is for informational purposes only and does not constitute a solicitation or offer to sell securities or insurance services over the internet.  

Securities offered through H.D. Vest Investment ServicesSM, Member SIPC, A non-bank subsidiary of Wells Fargo & Company, 6333 N. State Highway 161, Fourth Floor, Irving, TX 75038, 972-870-6000. 

Investments & Insurance Products: Are not insured by the FDIC or any federal government agency, are not deposits of or guaranteed by the bank or any bank affiliate and may lose Value.   

John Lister, Incorporated, PC is not a registered broker dealer or independent investment advisory firm.

 

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