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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Georgetown Financial Group, Inc
73 Redding Road, P.O. Box 11 Georgetown, CT 06829-0011
Phone: (203) 544-9300 Fax: (203) 544-9967
info@gfginc.com

Securities and Investment Advisory Services offered through Registered Representatives and investment advisor representatives of Tower Square Securities, Inc., a securities Broker/Dealer (member FINRA/SIPC) and a Registered Investment Adviser. Georgetown Financial Group is not affiliated with Tower Square Securities, Inc.

We have representatives licensed in the states of AZ, CA, CO, CT, FL, GA, IL, IN, LA, MA, MD, NC, NH, NJ, NY, PA, RI, SC, TX, VA, VT, WI for the sale of securities products. We have representatives licensed in the states of AZ, AR, CA, CO, CT, DE, DC, FL, GA, IL, IN, KS, ME, MD, MA, MI, MS, NH, NJ, NM, NY, NC, PA, SC, TX, VA, WV, WI, VI for the sale of insurance products.

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