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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Putman Capital Management, Inc.
2200 Pacific Coast Highway
Suite 209		 • Hermosa Beach, CA • 90254
Phone: (310)798-7053 • Fax: (310)798-7054
www.putmancapital.com

Securities offered through 1st Global Capital Corp., member FINRA, SIPC.  Investment advisory services, including fee based asset management accounts are held through NFS, LLC, are offered through 1st Global Advisors, Inc.  All other financial planning services are offered through Putman Capital Management, Inc.  Putman Capital Management, Inc. is not affiliated with 1st Global Capital Corp.  Insurance Services offered through 1st Global insurance Services, Inc.