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For premium support please call: 800-290-4726 more ways to reach us. ... You may also want to use a tax-equivalent yield calculator to compare taxable bonds with tax-advantaged bonds. Show comments.
In effect, selling a bond at a discount converts stated principal into a return on investment, or interest. The accurate determination of principal and interest is necessary in United States tax law to determine the basis of property and to determine whether an amount paid is deductible and includible as interest, or simply a nontaxable debt ...
For premium support please call: 800-290-4726 more ways to reach us. Sign in. Mail. ... a taxable bond would need to pay more than 5 percent before you’d earn more after-tax than with the 3 ...
Bonds can provide passive income, some of which may be tax-free if you're investing in municipal bonds. The tax-equivalent yield formula can be a useful tool for comparing taxable and tax-free ...
A municipal bond, commonly known as a muni, is a bond issued by state or local governments, or entities they create such as authorities and special districts. In the United States, interest income received by holders of municipal bonds is often, but not always, exempt from federal and state income taxation.
It is an adjusted version of yield to maturity for the bonds in the portfolio, as it does take into account the amortization of the premiums or discounts at which the bonds are trading. Because bond funds trade actively and prices fluctuate, the rate may not be a good indicator of future results.
Deferred financing costs or debt issuance costs is an accounting concept meaning costs associated with issuing debt (loans and bonds), such as various fees and commissions paid to investment banks, law firms, auditors, regulators, and so on. Since these payments do not generate future benefits, they are treated as a contra debt account.
Jason Bottenfield of Steward Partners Global Advisory joined Yahoo Finance Live to discuss strategies for retirement planning amid market volatility and why it may be time to consider taxable ...