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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Capital Asset Management, Inc.
3636 North Roff Avenue • Oklahoma City, OK • 73112
Phone: 405-947-2913 800-375-2913 • Fax: 405-948-9035
www.capitalassetmanagement.com • doliver@fscadvisor.com
Securities are offered through FSC SECURITIES CORPORATION, member FINRA/SIPC. They are not obligations of, or guaranteed by, FSC SECURITIES CORPORATION or any other affiliated entity. Such investments will fluctuate in value and are subject to investment risks, including loss of principal.

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We are licensed in the following states:
Arkansas, California, Delaware, Kansas, Massachusetts, Mississippi, Nebraska, Nevada, North Carolina, Oklahoma, Rhode Island, and Texas.