Bankrate.com provides a FREE tax equivalent yield calculator and other TEY calculators to view the yield of your municipal bonds.
"currently, investment grade municipals offer approximately 2.0% more yield than treasury bonds on a tax-equivalent basis, which is 0.60% above long-term average," says bill merz, head of capital market research for u.s. bank asset management group. this assumes the top federal income tax ...
The tax-equivalent yield provides a method of determining the return on a taxable bond or alternative investment in comparison with the return on a tax-exempt bond or investment. The TEY is frequently employed to assess the expected returns on municipal bonds, which are frequently referred to as...
The other factor involves tax exemptions for the security. Treasuries, in-state munis, and out-of-state munis all have different tax treatments, and not all municipal bonds will receive federal tax exemption. With those two pieces of information, calculating the tax-equivalent yield is straightforw...
1 Taxable muni bonds generally yield more than tax-free bonds to make up for the difference. What you can do: For investors in lower tax brackets and investing in taxable accounts, or those investing in either Roth or traditional IRA accounts, we believe taxable municipal bonds can make ...
单词 tax-equivalent yield 释义 tax-equivalent yield Definition The amount of taxes calculated on an investment that matches the taxes incurred on an investment made through a municipality. 随便看 acceptance credit acceptance criteria acceptance fee acceptance financing acceptance for honor acceptance letter...
Why municipal bonds may be bargains: munis yield over 4%--equivalent of a taxable bond yielding 6% for those in the 33% tax bracket.(Your Money)Luxenberg, Stan
Yield to Maturity:A bond's yield to maturity indicates the total return that an investor will realize from the bond investment, provided the bond is held until maturity. The current price of a bond is equal to the present value o...
The IRS may treat municipal interest income as taxable if a bond is purchased at a significant discount topar value. A mutual fund composed of tax-free bonds is subject tocapital gains tax.4 The Bottom Line The tax-equivalent yield is the return a taxable bond needs to equal the yield on...
Tax-free investments such as municipal bonds have lower yields due to their tax-exempt status. Use this calculator to determine an equivalent yield on a taxable investment. The higher your marginal tax bracket (state and federal), the higher the tax-equivalent yield.Note: This calculator assumes...