The taxable equivalent yield for a muni bond shows what you would have to earn on a taxable bond to equal the after tax return on a muni bond. Example, a muni bond has a EQ yield of 5% and you pay 20% federal income tax. The muni would actually pay interest of 4%. This is because if a taxable bond pays 5% and you pay 20% taxes, you would actually get after tax 4% (20% of 5% is 1%. 5%-1%=4%).
Municipal Bond Tax Equivalent Yield This calculator will estimate the tax-equivalent yield (TEY) for a municipal bond. Income generated from municipal bond coupon payments are not subject to federal income tax. In addition, if the bond was issued in your state of residence, you can also avoid state income taxes. Use this calculator to determine the yield required by a fully taxable bond to earn the same after tax income as a municipal bond.
Main categories in taxable bond funds are corporate bond funds, high-yield funds, world bond funds, government bond funds, and strategic income funds. The main tax-free bond fund categories are state municipal bond funds
If the yield curve is downward sloping, the yield to maturity on a 10-year Treasury coupon bond relative to that on a 1 year T-bond is the yield on the 10 year bond. It will be less than the yield on a 1-year bond.Ê
The symbol for BlackRock Maryland Municipal Bond Trust in the AMEX is: BZM.
Which of the following is most correct?a. The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond.b. The yield on a 3 year corporate bond will always exceed the yield on a 2 year corporate bond.c. The yield on a 3 year treasury bond will always exceed the year on a 2 year treasury bond.d. All of the answers above are correct.e. Statements a and c are correct.
Municipal Bond Tax Equivalent Yield This calculator will estimate the tax-equivalent yield (TEY) for a municipal bond. Income generated from municipal bond coupon payments are not subject to federal income tax. In addition, if the bond was issued in your state of residence, you can also avoid state income taxes. Use this calculator to determine the yield required by a fully taxable bond to earn the same after tax income as a municipal bond.
You can receive a Municipal bond fund from companies such as BlackRock. Alternatively, you can also receive a Municipal bond fund from Minnesota Municipal Income.
is the yield of a bond in the market
The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond
The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasury bond
neither once the bond is created the yield is set. the bond price is simply a reflection of the current rate and the rate, 'yield' of the bond.
Main categories in taxable bond funds are corporate bond funds, high-yield funds, world bond funds, government bond funds, and strategic income funds. The main tax-free bond fund categories are state municipal bond funds
The yield to maturity represents the promised yield on a bond
---- Depending on the number of days to call (or maturity), coupon rate, and price paid, any bond will have a different yield to worst (the lower of the yield to maturity or yield to call). If you decide to hold the bond to the potential call date or maturity date, the only risk assumed will be the risk of the issuer's default or coupon reset. This risk is qualified by rating agencies, such as Standard & Poor's, with bond ratings like AAA or BB, etc. AAA municipal bonds are commonly insured against the issuer's default. If you want to sell a municipal bond before the maturity or call date, you additionally bear the market risk of price fluctuations. These fluctuations will be mainly due to expectations about future interest rate changes in the market (e.g., Fed Fund Rate by FOMC).
what is relationship between bond price and yield?
The symbol for Blackrock Municipal Bond Trust in the NYSE is: BBK.
Blackrock Municipal Bond Trust (BBK)had its IPO in 2002.