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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Daniel B.G. Levine is a registered representative of and offers securities, investment advisory services and financial planning services through MML Investors Services, Inc.,  Member SIPC (www.SIPC.org ) Supervisory Office: 4275 Executive Square, Ste. 400, La Jolla, CA, 92037. (858) 558-7000.

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Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. Massachusetts Mutual Life Insurance Company assumes no liability for the use of or reliance on these calculators.