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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Gulf Coast Educators Federal Credit Union
5953 Fairmont Parkway Pasadena, TX 77505
Phone: (281) 925-4140 Fax: (281) 998-5891
www.gcefcu.pfyfn.com sgilbert@swbcinvestments.com

Securities offered through SWBC Investment Services, LLC, a registered broker/dealer. Member SIPC & FINRA.  SWBC Investment Services, LLC, SWBC Investment Company and this institution are not affiliated. SWBC Investment Company is a Registered Investment Advisor.
 
Securities are:
  • Not NCUA/NCUSIF Insured
  • Not Guaranteed by the Credit Union
  • Not a Deposit
  • Not insured by any Federal Government Agency
  • May Lose Value
 
Supervisory Office:
Allen Barton,
SWBC Investment Services, LLC
9311 San Pedro, Suite 600   
San Antonio, TX  78216
(210) 321-7296
(210) 525-9461  Fax
compliance@swbcinvestments.com