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?

%
 
   
   
MetLife Financial Group Of Texas
Dallas, Austin, Fort Worth and San Antonio, TX
Phone: 1.877.590.0985 Fax: 1.972.246.1899
www.mfgtexas.metlife.com

Metropolitan Life Insurance Company (MLIC). Securities products offered by MetLife Securities, Inc. (MSI) Member FINRA/SIPC.
MLIC and MSI are affiliates, both of 200 Park Avenue, New York, NY 10166.
Investment advisory services offered by Investment Adviser Representatives of MetLife Securities, Inc., a  Registered Investment Adviser.
Copyright 2009, Metropolitan Life Insurance Company. All Rights Reserved.
PEANUTS© United Feature Syndicate, Inc.
Privacy Policy
Legal Notices