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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Pioneer Financial Center
105 S. Main
PO Box 74		 • Bowman, ND • 58623
Phone: 701-523-7000
www.pioneerfinancialcenter.net • darren.limesand@pioneerfinancialcenter.net

Securities offered through Questar Capital Corporation (QCC), Member FINRA, SIPC.  Advisory Services offered through Questar Asset Management (QAM) a Registered Investment Advisor.  Pioneer Financial Center is independent of QCC and QAM.