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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Jeff Bullard
5 Park Plaza, Suite 1800 Irvine, CA 92614
Phone: 949-471-5829 Fax: 949-851-6323
www.jeffbullard.metlife.com jbullard@metlife.com

Metropolitan Life Insurance Company (MLIC), New York, NY 10166. Securities products and investment advisory services offered by MetLife Securities, Inc. (MSI) (member FINRA/ SIPC), and a registered investment adviser, New York, NY 10166. Automobile and homeowners insurance issued by Metropolitan Property and Casualty Insurance Company and its affiliates, Warwick, RI (may not be available in all states). MLIC, MSI, and Met P&C are affiliates.
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