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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Covenant Financial Advisors
4753 Olde Pump Street
P. O. Box 141		 • Walnut Creek, OH • 44687-0141
Phone: 330.852.7800
Toll Free: 800.426.8362		 • Fax: 330.852.7900
• Neal@CovenantFinancialAdvisors.net

SM- All Investments entail risk, and performance is NOT guaranteed

Advisory services are provided through Creative Financial Designs, Inc., Registered Investment Adviser, and securities are offered through cfd Investments, Inc., a registered Broker/Dealer.
Member FINRA & SIPC  2704 South Goyer Road Kokomo, IN 46902 (765) 453-9600

Covenant Financial Advisors is not owned, controlled, or affiliated with CFD Investments, Inc.,
or Creative Financial Designs.