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 marginal tax bracket?

What is the yield (in percentage points) on the municipal bond you are considering?

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Knight Financial Services
1701 River Run Road
Suite 1011		 • Fort Worth, TX • 76107
Phone: 817-878-5711 • Fax: 817-878-5744
www.knightfinancial.com • hknight@knightfinancial.com

Heidi Knight is a Registered Representative of and offers securities products & services through Royal Alliance Associates, Inc. Member FINRA/SIPC a registered broker-dealer. In this regard, this communication is strictly intended for individuals residing in the states of Arkansas, Colorado, New Jersey, New Mexico, North Carolina, Oklahoma, Texas, and Virginia. No offers may be made or accepted from any resident outside the specific states referenced.

Heidi Knight is also separately registered as an investment adviser representative under Knight Financial Services, a registered investment advisor, offering advisory services in the state of Texas. As such, these services are strictly intended for individuals residing in Texas.

Advisory services offered through Royal Alliance Associates, Inc., a Registered Investment Advisor.


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