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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Mayflower Advisors, LLC
Mayflower Advisors, LLC-Boston
260 Franklin Street, 7th Floor
Boston, Massachusetts 02110
phone: 617-259-1767
toll-free: 866-688-0180
fax: 617-259-1768

Contact:
Steven Dimitriou
steve.dimitriou@mayfloweradvisors.com



Mayflower Advisors, LLC-Westborough
287 Turnpike Road, Suite 250
Westborough, Massachusetts 01581
phone: 508-948-4050
toll-free: 877-454-1620
fax: 508-898-1900

Contact:
John Wilcox
john.wilcox@mayfloweradvisors.com