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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UW Credit Union
3500 University Ave. • Madison, WI • 53705
Phone: 608-232-5000 or 800-533-6773, ext. 2107
www.uwcuinvestmentservices.org

 

Securities offered through Securities America, Inc., a Registered Broker/Dealer, Member FINRA/SIPC., and Financial Planning and Advisory Services offered through Securities America Advisors, Inc., an SEC Registered Investment Advisory Firm, Nate Condon, Clint Walkner, Jeremy Marshall, and Jason Sherry, Representatives. UW Credit Union and UW Credit Union Investment Services are not affiliated with the Securities America companies.
 
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Insurance licensed in:  WI
Investment Advisory licensed in:  WI
 
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