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Tax-Equivalent Yield of a Muni Bond

SELECT THE INCOME BRACKET THAT BEST MATCHES YOUR HOUSEHOLD INCOME TO GET THE TAX-EQUIVALENT YIELD:

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    Source: Internal Revenue Service, Bloomberg, The Tax Foundation

    Yields represent bonds with 10-year maturities. *Tax rates are for married couples filing jointly.

    Past performance is not indicative of future results.

    All investments involve risk. This information is educational in nature, provided as general guidance on the subject covered, and is not intended to be authoritative or to provide tax or investment advice.

    Tax-equivalent yield is a calculation used to compare the yield of a municipal bond to the yield of a taxable bond. The 10-year Treasury Yield measures the yield of U.S. government issued Treasury Bonds with 10-year maturities. The Municipal AAA General Obligation Yield is the composite yield of municipal securities with maturities of around 10 years. Bond investors should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. Indexes are unmanaged and investors cannot invest directly in an index. The yields illustrated do not represent any RidgeWorth Fund. A tax-exempt municipal bond’s income may be subject to certain state and local taxes and, depending on an investor’s tax status, the federal alternative minimum tax. RidgeWorth does not provide tax advice. Please consult your tax advisor for your particular situation.