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?

%
 
   
   
Royal Palm Financial
Corporate Headquarters

5485 Wiles Road
Suite 406
Coconut Creek, FL 33073
Toll Free (877) 401-5787
Fax (954) 933-9987

Bonita Springs Office:

9990 Coconut Road
Suite 210
Bonita Springs, FL 34135
Toll Free (888) 400-3400
Fax (239) 948-4136

Fort Myers Office:

15940 Chatfield Drive
Fort Myers, FL 33908
Toll Free (866) 601-0004
Fax (239) 433-9090