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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Bridgewater Credit Union
75 Main St Bridgewater, MA 02324-1406
Phone: 508-279-2404
rdeluca@bridgewatercu.com

Securities offered through Securities America, Inc., member FINRA/SIPC and advisory services offered through Security Advisors, Inc., Ross DeLuca Representative.  Bridgewater Credit Union and Bridgewater Credit Union Investment Services are not affiliated with the Securities America companies. Investments are not NCUA insured, not Credit Union guaranteed and may lose value. 

Securities and insurance licensed in:  MA