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Assume that you are in one of the 7 federal tax brackets (https://www.nerdwallet.com/blog/taxes/federal-income-tax-brackets/ (Links to an external site.)Links to an external site.) and have an
Assume that you are in one of the 7 federal tax brackets (https://www.nerdwallet.com/blog/taxes/federal-income-tax-brackets/ (Links to an external site.)Links to an external site.) and have an opportunity to invest in a municipal bond with either a 4%, 5%, 6%, 7%, or 8% yield. Use the formula below to calculate your Tax Equivalent Yield: Tax Equivalent Yield = Municipal Yield / (100% - Tax Bracket) Repeat the process and state how your tax bracket impacts such an investment
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