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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BCR Financial
2000 Corporate Drive, Suite 350 • Wexford, PA • 15090
Phone: 724-933-9000 • Fax: 724-933-9001

*Registered Representatives of Lincoln Financial Securities Corporation, Member SIPC offering investments to residents of the states of: AL, AZ, CA, CO, CT, DE, DC, FL, GA, HI, IA, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NH, NJ, NV, NY, OH, OK, OR, PA, RI, SC, SD, TX, UT, VA, WA, WI, & WV. BCR Financial Services, L.L.C. is a Pennsylvania licensed Registered investment Advisor. To see a directory of BCR Advisors, please click here.  In NY, insurance may be offered through LFS Marketing & Insurance Agency Corporation.  In CA, insurance may be offered through LFS Marketing & Insurance Sales Corporation.  Some life insurance and annuity policies involve exclusions or limitations.  For costs and complete details of coverage, contact your agent. Lincoln Financial Securities and their representatives do not offer legal or tax advice.  Please see your legal or tax professional regarding your individual circumstances.  BCR Financial Services, L.L.C.  and Lincoln Financial Securities are not affiliated.