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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Mrozek Financial
2210 W. State St. • New Castle, PA • 16101
Phone: 724-658-6392 • Fax: 724-658-6371
• rmrozek@mrozekfinancial.com

Robert C. Mrozek is a Registered Representative and Investment Advisor Representative of, and offers securities and advisory services through WRP Investments. Inc. member FINRA and SIPC.  Mrozek FInancial is not affiliated with WRP Investments.  Securities and advisory activities are supervised from 4407 Belmont Ave. Youngstown, OH 44505 and are available to residents of Fl. Oh. & Pa. only.

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