Sentences with phrase «taxable equivalent yields»

Taxable Equivalent Yields are used as a comparative measure only.

In their view, credit fundamentals are improving for many municipal bond issuers and taxable equivalent yields are attractive relative to other fixed income asset classes.

Meanwhile, taxable equivalent yields of the non-callable municipal bonds in that maturity range remain significantly higher and more in line with U.S. corporate bonds.

Taxable Equivalent Yield: The Taxable Equivalent Yield assumes the maximum regular federal income tax rate and the Medicare tax in effect on January 2018.

Those considering an investment in a municipal bond fund should start with figuring out their taxable equivalent yield.

There is a calculator called Taxable Equivalent Yield Calculator (link below) where if I put in 3 % and 33 % as my tax bracket, I get the result of 4.48 %.

But factor in munis» tax exemption, and that's a 4.42 % taxable equivalent yield on a 30 - year municipal bond.

I mentioned that the TEY or taxable equivalent yield (it's time for you to get used to the language used in the investment world!)

Here's a cheat sheet of the taxable equivalent yield based on each marginal tax bracket.

* Taxable Equivalent Yield assumes a 39.6 % tax rate.

For a quick example, lets assume a marginal tax rate of 25 % and we want to know the taxable equivalent yield of a municipal bond paying 3 %:

At that point the 3 % municipal bond has a taxable equivalent yield of 4.62 %, slightly higher than the corporate bond.

In making the initial decision to purchase a tax - exempt bond you should calculate the taxable equivalent yield to determine if municipals are the right fixed - income investment for your own situation.

However, looking at it from the perspective of Taxable Equivalent Yield (TEY) municipal bonds are currently at higher yields than their corporate bond equivalents.

The yield to worst results in a Taxable Equivalent Yield of 3.29 %.

0.01 % Effective Yield — 0.01 % Current Yield With Waiver ---0.30 % Current Yield Without Waiver — 0.24 % OER — 0.02 % Taxable Equivalent Yield

1) Yield represented is Yield to Worst as of December 30, 2016 2) Taxable Equivalent Yield assumes a 39.6 % tax rate.

If you are paying 25 %, then the taxable equivalent yield for the muni is only 4.67 %, so the taxable bond at 5 % is still a better deal.

o The Taxable Equivalent Yield of these same municipal bonds is over 8 % when using a 35 % tax rate.

When choosing a municipal bond or bond fund, first use the taxable equivalent yield chart to get an apples to apples comparison against taxable bond yields.

(For more, see: Risk and Return Measures: Taxable Equivalent Yield.)

The Taxable Equivalent Yield (TEY) of those bonds using a 35 % tax - rate assumption would be 2.77 % (the required yield of a taxable bond to keep the same interest income after taxes).

Using a tax rate of 35 %, the Taxable Equivalent Yield of these investment grade municipal bonds has moved to 4.38 %.

Investment Calculator # 20: This calculates the taxable equivalent yield after inputting a tax - free yield.

Taxable Equivalent Yield is the yield that must be received from a taxable investment to deliver the same after - tax return as a tax - free investment.

This calculator will tell you the taxable equivalent yield of a tax - free investment.

Not exact matches

We believe that long - term tax - free municipal bonds that offer near - 4 % yields (a 6.62 % taxable equivalent at today's top rate and 6.15 % even at the new proposed top rate of 35 %) still offer superior value.

Converting this to a TEB (Taxable Equivalent Basis) a non-IL resident in the top tax bracket would need to invest in a corporate bond yielding 7.6 % to match.

But after considering the impact of taxes, the taxable - equivalent yield (the return required on a taxable bond to make it equal to the return of a tax - exempt bond) of municipal bonds was a full percentage point higher, at 3.75 %, for investors in the highest (37 %) tax bracket.

An investor must calculate the tax - equivalent yield to compare the return with that of taxable instruments.

I believe we have a chart we can show you on how to calculate what we call the «taxable - equivalent yield,» correct?

The tax equivalent yield formula is used to compare the yields between a tax - free investment and a taxable investment.

But after considering the impact of taxes, the taxable - equivalent yield (the return required on a taxable bond to make it equal to the return of a tax - exempt bond) of municipal bonds was a full percentage point higher, at 3.75 %, for investors in the highest (37 %) tax bracket.

Municipal bonds can play an important role in an investor's portfolio, offering a higher tax - equivalent yield than many taxable fixed income alternatives, and the potential for portfolio diversification to stocks and other types of bonds.

Use our Taxable - Equivalent Yield Calculator.

With this information, an investment in the muni bond with the tax - equivalent 6.54 % yield would be a better investment than a taxable bond yielding, say, 5.25 %.

Because of variables in supply and demand, tax - exempt yields in the municipal market can sometimes be quite attractive when compared to their taxable equivalents (see the 2010 Tax Year Tax - Exempt / Taxable Yield Equivataxable equivalents (see the 2010 Tax Year Tax - Exempt / Taxable Yield Eqequivalents (see the 2010 Tax Year Tax - Exempt / Taxable Yield EquivaTaxable Yield EquivalentsEquivalents).

The tax - equivalent yield takes into account an individual investor's current tax rate to determine whether an investment in a municipal bond is equivalent to a corresponding investment in a given taxable bond.

The tax - equivalent yield is the pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax - free municipal bond.

For example, a tax - free yield of 7 % is equivalent to a taxable yield of 9.7 % for an investor in the 28 % federal income tax bracket, and to a taxable yield of 10.9 % for an investor in the 36 % tax bracket.

The Tax - Exempt / Taxable Yield Equivalents table will help you determine the amount of income you require from a taxable investment to equal the yield on a tax - exempTaxable Yield Equivalents table will help you determine the amount of income you require from a taxable investment to equal the yield on a tax - exempt Yield Equivalents table will help you determine the amount of income you require from a taxable investment to equal the yield on a tax - exemptaxable investment to equal the yield on a tax - exempt yield on a tax - exempt bond.

For example, Vanguard Municipal Money Market (VMSXX) yields 1.10 %, which is a taxable - equivalent yield of 1.75 % for an investor in the 37 % federal tax bracket.

So a 4 % tax - free yield with a 25 % tax rate is the equivalent of 5.33 % taxable.

Look at the taxable - equivalent yield - the yield you'd need to earn on a comparable taxable fund after paying taxes to match the yield of the tax - free fund.

To determine whether or not a tax - free bond is a better option than a taxable bond, simply apply the Tax Equivalent Yield (TEY) formula.

Tax - equivalent yield (TEY) is the yield that a taxable bond must hold to equal or exceed the tax - adjusted yield of a municipal bond.

The big daddy is a Vanguard offering, 4x bigger at $ 2bln +; Vanguard NJ Long - Term Tax - Exempt Inv., VNJTX, yielding 3.46 % (Federal and NJ tax exempt) which may seem paltry, until you calculate the taxable equivalent basis (TEB).

PowerShares National Muni (PZA) and iShares National Muni (MUB) both provide taxable - equivalent yields near 7 % for those in the 35 % tax bracket.

While a yield of 6.01 % doesn't exactly make me giddy with excitement, it is completely tax - free, which makes it equivalent to a taxable 8 - 9 % yield, so it's actually a respectable yield compared to taxable dividends.

«Right now there are fantastic opportunities in municipal bonds... I have locked in... long - term high - quality municipal bonds yielding the taxable equivalent of 11 % to over 12 %!