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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Floyd Miller www.floydmillerinvestments.com

3300 South 14th Suite 100

 •

Abilene

, TX		 •

79605
Phone:

325 676 0138

 • Fax:

325 670 9860
• fmiller@fscadvisor.com

*Securities and advisory services offered through FSC Securities Corporation member FINRA/SIPC and a registered investment advisor. Floyd Miller Investments is not affiliated with FSC Securities Corporation or registered as a broker dealer or investment advisor.

Registered Branch Office 3300 South 14th Street Abilene, Texas 79605. Office#325 676-0138 Toll Free:1 877 588-0138

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