Break-Even Tax Bracket: When Does the Muni Win?
This lesson is part of the course
In this lesson
You find the tax rate at which a muni and a taxable bond pay the same, build a TEY table for a ladder of marginal rates and pick the lowest rate where the muni comes out ahead.
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Lessons in this course
- Tax-Equivalent Yield: Federal Only and Federal + State Locked
- Break-Even Tax Bracket: When Does the Muni Win? Locked
- Yield to Maturity & Yield to Call with RATE Locked
- Yield to Worst: the Lowest Yield over the Call Schedule Locked
- GO vs Revenue Bonds: Debt Service Coverage from Pledged Revenues Locked
- Credit Spreads vs Ratings: Spread to the AAA Curve Locked
- Premium & Discount Munis: the De Minimis Rule (Simplified) Locked
- Muni vs Corporate vs Treasury after Tax (Chart) Locked