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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Lighthouse Financial Strategies
8725 Rosehill Road
Suite 320		 • Lenexa, KS • 66215
Phone: Jim 913-322-0006
Phone: Rick 816-537-5148
Phone: Gardner 913-322-0006
 • Fax: Jim 913-322-0007
Fax: Rick 816-537-9964
Fax: Gardner 913-322-0007
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Investment Advisory Services are provided through Creative Financial Designs, Inc., a Registered Investment Advisor.  Securities are offered through CFD Investments, Inc., member FINRA/SIPC, 2704 South Goyer Road, Kokomo, IN 46902 (765) 453-9600.  Lighthouse Financial Strategies is not a subsidiary of nor controlled by Creative Financial Designs, Inc., nor CFD Investments, Inc.