Taxable Equivalent Yield

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:

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All return assumptions are for the purposes of tax planning and are hypothetical. They do not represent any actual investments.