ÿþ<HTML> <HEAD> <TITLE>Municipal Bond Tax Equivalent Yield</TITLE> <META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso8859-1"> <META NAME="description" CONTENT="Financial Calculators, ©1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net"> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <!-- Financial Calculators, ©1998-2008 KJE Computer Solutions, LLC. For more information please see: <A HREF="http://www.dinkytown.net">http://www.dinkytown.net</A> --> <SCRIPT LANGUAGE="JavaScript"> <!-- function doLeave() { //alert("leave the applet focus"); document.calcsubmit.btnCallCalc.focus(); } function showbuttons() { var agt = navigator.userAgent.toLowerCase(); var IEMAC = ((agt.indexOf("msie") != -1) && agt.indexOf("mac")!=-1); var N6 = (agt.indexOf("netscape6") != -1 || (agt.indexOf("netscape/6") !=-1 )); if ( N6 ) { return "Netscape 6 is unable to support our detailed reports. Please upgrade to Nescape 7 or higher.<P>"; } if ( IEMAC ) { return "<P>"; } return "<P><FORM name=calcsubmit><INPUT TYPE='button' value='Calculate' Name='btnCallCalc' onClick='document.calculator.calculate()'><INPUT TYPE='button' value='View Report' Name='btnOpenNote' onClick='openNote()'></FORM>"; } function openNote() { var agt=navigator.userAgent.toLowerCase(); var is_aol = (agt.indexOf("aol") != -1); leftpos=0; if (screen) { leftpos=screen.width/2 - 300; } if (is_aol) { var s = " "; s=document.calculator.sJavaScriptReport('HTML'); document.write(s); } else { var OpenWindow=window.open("","newwin","toolbar=yes,menubar=yes,location=no,directories=no,status=no,scrollbars=yes,resizable=yes,copyhistory=no,width=600,height="+(screen.height-120)+",left="+leftpos+",top=5"); var s = " "; s=document.calculator.sJavaScriptReport('HTML'); OpenWindow.document.write(s); OpenWindow.document.close(); OpenWindow.focus(); } } // --> </Script> <BODY bgcolor="#FFFFFF" LINK="#003399" VLINK="#666666" BGCOLOR="#FFFFFF"> <!-- \Title\ --> <P><CENTER><table border=0 bgcolor="#000000" width=468 cellspacing=1 cellpadding=0><tr><td width="100%"><table bgcolor="#FFFFDD" border=0 width=468 cellspacing=1 cellpadding=5><tr><td width="100%" align=center valign=middle><DIV class=large><a href="index.html" STYLE="text-decoration: none">100 Free Tax, Debt and Financial Calculators</a></DIV></td></tr></table></TD></TR></TABLE></CENTER> <!-- \Main Area\ --> <!-- Financial Calculators, ©1998-2008 KJE Computer Solutions, LLC. For more information please see: <A HREF="http://www.dinkytown.net">http://www.dinkytown.net</A> --> <H1>Municipal Bond Tax Equivalent Yield</H1> <P> 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. <P><CENTER> <!--[if IE]><object name="calculator" classid="clsid:8AD9C840-044E-11D1-B3E9-00805F499D93" codebase="http://java.sun.com/update/1.6.0/jinstall-6-windows-i586.cab#Version=1,4,0,0" height="400" width="565"><param name="code" value="TaxEquivYield" /><param name="archive" value="dinkytown.jar" /> <P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]--><![if !IE]><P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]></P><![if !IE]><APPLET name="calculator" code="TaxEquivYield.class" align="baseline" WIDTH="565" HEIGHT="400" archive="dinkytown.jar"><![endif]> <PARAM name="BOND_YIELD" value="5"> <PARAM name="ESTIMATED_TAXABLE_INCOME" value="100000"> <PARAM name="FEDERAL_TAX_FILING_STATUS" value="0"> <PARAM name="STATE_INCOME_TAX_RATE" value="0"> <!--CUSTOM PARAMETERS--> <PARAM name="TEXT_FOR_REPORT" value="<HTML> <HEAD> <TITLE>Municipal Bond Tax Equivalent Yield</TITLE> <META HTTP-EQUIV='Content-Type' CONTENT='text/html; charset=iso8859-1'> <META NAME='description' CONTENT='Financial Calculators, &QCPQ;1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net'> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <BODY bgcolor='#FFFFFF' LINK='#003399' VLINK='#666666' BGCOLOR='#FFFFFF'> <P><CENTER><table border=0 bgcolor='#000000' width=468 cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFDD' border=0 width=468 cellspacing=1 cellpadding=5><tr><td width='100%' align=center valign=middle><DIV class=large>Municipal Bond Tax Equivalent Yield</DIV></td></tr></table></TD></TR></TABLE></CENTER> <H1>A BOND_YIELD municipal bond yield has a STATE_MUNICIPAL_YIELD tax equivalent yield. </H1>**GRAPH** <P> This yield assumes that the interest earned is not subject to federal or state income taxes. If this bond or bond fund is subject to state income taxes, the tax equivalent yield is FEDERAL_MUNICIPAL_YIELD. The federal income tax rate used in this calculation was FED_INCOME_TAX_RATE and you entered your state income tax rate as STATE_INCOME_TAX_RATE. <P><CENTER><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=5> <TR BGCOLOR='#CCCCCC'><TD COLSPAN=2><CENTER><B>Results Summary</B></CENTER></TD></TR> <TR><TD><b>Federal tax filing status </b> </TD><TD> FEDERAL_TAX_FILING_STATUS </TD></TR> <TR><TD><b>Estimated taxable income </b> </TD><TD> ESTIMATED_TAXABLE_INCOME </TD></TR> <TR><TD><b>Federal income tax rate </b> </TD><TD> FED_INCOME_TAX_RATE </TD></TR> <TR><TD><b>State income tax rate </b> </TD><TD> STATE_INCOME_TAX_RATE </TD></TR> <TR><TD><b>Total effective income tax rate </b> </TD><TD> TOTAL_TAX_RATE </TD></TR> <TR><TD><b>Bond yield </b> </TD><TD> BOND_YIELD </TD></TR> <TR BGCOLOR='#CCCCCC'><TD><b>Tax Equivalent Yield (TEY)<BR>Exempt from federal income tax </b> </TD><TD valign=top> FEDERAL_MUNICIPAL_YIELD</TD></TR> <TR BGCOLOR='#CCCCCC'><TD><b>Tax Equivalent Yield (TEY)<BR>Exempt from federal and state income taxes</b> </TD><TD valign=top> STATE_MUNICIPAL_YIELD</TD></TR> </TABLE></TD></TR></TABLE></CENTER> <BR> <HR SIZE=1> <CENTER><P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER><br><br> </BODY> </HTML> "> <H1><CENTER>This Financial Calculator requires SUN's Java"! Plug-in. If you see this message you will need to download SUN's Java"! Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing  Install ActiveX Control . </CENTER></H1> <OL> You can also get SUN's Java"! Plug-in here: <A href="http://www.java.com/en/download/download_the_latest.jsp" target=_blank><b>Get the Java"! Plug-in!</b></A> <P>For more information about this Plug-in please visit: <A href="http://www.dinkytown.net/money/sunjvm.html" target=_blank><b>SUN's Java"! Plug-in</b></A> <BR>For more information these financial calculators please visit: <A href="http://www.dinkytown.net" target=_blank><b>Financial Calculators from KJE Computer Solutions, LLC</b></A> </OL><!--[if IE]></OBJECT><![endif]--><![if !IE]></APPLET><![endif]> </CENTER><CENTER><SCRIPT>document.write(showbuttons())</SCRIPT></CENTER> <H1>Definitions</H1><P><TABLE align='center' WIDTH="95%"><TR><TD><DL><!--DEFN_START--> <DT><B>Bond yield</B><DD> This is the annual yield of your municipal bond or bond fund. <P> <DT><B>Estimated taxable income</B><DD> This is your total income, after exemptions, adjustments, and deductions. We use this, along with your filing status, to determine your marginal income tax rate. You can use last year's tax return as a guide to what your taxable income will be for the current year. Your taxable income can be found on your income tax form 1040 or 1040A. Make sure to increase or decrease the amount to compensate for any changes to your current year's income.<P> <DT><B>Federal tax filing status</B><DD> This is used, along with your taxable income, to determine your federal marginal income tax rate. The table below lists the federal income tax rates by income and filing status. We use this table to determine your marginal federal income tax rate.<P> <CENTER> <TABLE WIDTH=90% BORDER=1> <TR class=tblheader><TD align=center colspan=5><b>Filing Status and Income Tax Rates 2010</b><P class=footer>Caution: Do not use these tax rate schedules to figure 2009 taxes. Use only to figure 2010 estimates. </P></TD></TR> <TR class=tblheader><TD align=center width="12%"><b>Tax rate</b></TD><TD align=center width="22%"><b>Married filing jointly<BR>or Qualified Widow(er)</b></TD><TD align=center width="22%"><b>Single</b></TD><TD align=center width="22%"><b>Head of household</b></TD><TD align=center width="22%"><b>Married filing separately</b></TD></TR> <TR class=tblrow><TD align=center width="12%"><b>10%</b></TD> <TD align=center width="22%"> $0 - 16,750</TD> <TD align=center width="22%"> $0 - 8,375</TD> <TD align=center width="22%"> $0 - $11,950</TD> <TD align=center width="22%"> $0 - 8,375</TD></TR> <TR class=tblrow2><TD align=center width="12%"><b>15% </b></TD> <TD align=center width="22%"> $16,751- 68,000</TD> <TD align=center width="22%"> $8,376- 34,000</TD> <TD align=center width="22%"> $11,951- 45,550</TD> <TD align=center width="22%"> $8,376- 34,000</TD></TR> <TR class=tblrow><TD align=center width="12%"><b>25%</b></TD> <TD align=center width="22%"> $68,001- 137,300</TD> <TD align=center width="22%"> $34,001- 82,400</TD> <TD align=center width="22%"> $45,551- 117,650</TD> <TD align=center width="22%"> $34,001- 68,650</TD></TR> <TR class=tblrow2><TD align=center width="12%"><b>28%</b></TD> <TD align=center width="22%"> $137,301- 209,250</TD> <TD align=center width="22%"> $82,401- 171,850</TD> <TD align=center width="22%"> $117,651- 190,550</TD> <TD align=center width="22%"> $68,651- 104,625</TD></TR> <TR class=tblrow><TD align=center width="12%"><b>33%</b></TD> <TD align=center width="22%"> $209,251- 373,650</TD> <TD align=center width="22%"> $171,851- 373,650</TD> <TD align=center width="22%"> $190,551- 373,650</TD> <TD align=center width="22%"> $104,626- 186,825</TD></TR> <TR class=tblrow2><TD align=center width="12%"><b>35%</b></TD> <TD align=center width="22%"> over $373,650</TD> <TD align=center width="22%"> over $373,650</TD> <TD align=center width="22%"> over $373,650</TD> <TD align=center width="22%"> over $186,825</TD></TR> </TABLE></CENTER> <CENTER>Source: http://www.irs.gov/pub/irs-drop/rp-09-50.pdf</CENTER> <P> <DT><B>State income tax rate</B><DD> Your marginal state income tax rate, if any. <!--DEFN_END--></DL></TD></TR></TABLE> <BR> <HR SIZE=1> <CENTER> <P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER> <BR> </BODY> </HTML>