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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Williamson Financial Services
198 Main Street - Suite 100 • Trussville, AL • 35173
Phone: (205) 661-9333 • Fax: (205) 661-9444
• freddy@williamsonfinancial.com

Freddy Williamson solicits business only in Alabama, Florida, Georgia, consequently he maintains licenses for those three states alone. His licenses include Series 6, 7, 63 and 66, and also maintains a life, disability and variable annuity licenses. He is a member of the International Association of Registered Financial Consultants (RFC), and a CFP candidate.

No parts of this communication should be construed as an offer to sell or provide investment advice or recommendations. Securities offered through ProEquities, Inc. will flucuate and are subject to investment risks including possible loss of principal.

Freddy J. Williamson can be reached at (205) 661-9333 or 1-888-343-PLAN. Investment advisory services offered through Investment Advisers, a division of ProEquities, Inc., a Registered Investment Advisor. Securities offered through ProEquities, Inc., a registered broker-dealer, and member FINRA and SIPC. Williamson Financial Services is independent of ProEquities.