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?

%
 
   
   

Jeff Zemito is a registered representative of and offers securities, investment advisory and financial planning services through MML Investors Services, LLC Member SIPC Supervisory office 1660 West 2nd Street Suite 850 Cleveland, OH 44113-1454 216-621-5680

I am licensed to sell insurance products in Florida, Georgia, Michigan, Ohio, Pennsylvania and South Carolina.  I am registered to offer securities in Ohio.  I cannot communicate with, nor respond to, requests from users who reside in states where I am not licensed to conduct insurance and/or securities business. CRN201402-157037 

 

 

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. Massachusetts Mutual Life Insurance Company assumes no liability for the use of or reliance on these calculators.