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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Ritterhouse & Associates
25 Meadowland Universal City , TX 78148
Phone: (210)659-9002 Fax: (210)659-9022
joe@ritterhouse.com

 Representative registered with and securities and advisory services offered through PlanMember Securities Corporation, a registered broker/dealer, investment advisor and member FINRA/SIPC.6187 Carpinteria Ave., Carpinteria, CA 93013. (800) 874-6910. Ritterhouse & Associate  and PlanMember Securities Corporation are independently owned and operated.

 

 

William Ritterhouse and Joseph Ritterhouse, Registered Representatives, PlanMember Secutities Corp.  

 

Both gentlemen are also insurance-licensed in Texas.