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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Wright Financial Services
8601 Six Forks Rd., Suite 400 • Raleigh, NC • 27615
Phone: (919) 844-1623 • Fax: (919) 844-1680
• keith.wright@questarcapital.com

Keith Wright is a Registered Representative of and offers securities products & services through Questar Capital Corporation, Member FINRA/SIPC, a registered broker-dealer.  Advisory Services offered through Questar Asset Management (QAM), A Registered Investment Advisor.  Wright Financial Services, LLC is independent of QCC and QAM.  In this regard, this communication is strictly intended for individuals residing in the states of North Carolina, Minnesota, Wisconsin, and California. No offers may be made or accepted from any resident outside the specific states referenced.

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