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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Raymond James Financial Services/The CrossleyShear Group
1515 International Parkway
Heathrow, FL 32746
Phone 407.215.7575
Toll Free 877.953.PLAN
Fax 407.333.1229

2395 N. Courtenay Parkway
Merritt Island, FL 32953
Phone 321.452.0061
Toll Free 877.953.PLAN
Fax 321.452.4403

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