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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Sage Investments Inc.
391 Boyds Mills Road • Milanville, PA • 18443
Phone: 570.729.1020 • Fax: 570.729.1220
• jsheard@cfiemail.com

This is not an offer to sell securities, which may be done only after a delivery of a prospectus and client suitability is reviewed and determined.  Information relating to securities is intended for use by individuals residing in AR, FL, NC, NY, PA, and VA.
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