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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Palette Financial Group
909 Garnet Cove • Oak Point, TX • 75068
Phone: 214-912-6261 • Fax: 972-292-1927
www.palettefinancial.com • dpainter@aicinvest.com

This is not an offer of securities in any jurisdiction, nor is it specifically directed to a resident of any jurisdiction. As with any security, request a prospectus from your registered representative . Read it carefully before you invest or send money. Securities products are limited to residents of Colorado, Georgia and Texas. A representative from Palette Financial Group will contact you to provide requested information. Securities and advisory services offered through Ameritas Investment Corp.(AIC). Member FINRA/SIPC. 5900  O St. Lincoln, NE. 68510 (402)467.6900. AIC and Palette Financial Group are not affiliated. Representatives of AIC do not provide tax or legal advice. Please consult your advisor or attorney regarding your situation.