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  2. What is a tax-equivalent yield on municipal bonds? - AOL

    www.aol.com/finance/tax-equivalent-yield...

    Tax-equivalent yield = Municipal bond yield / (1 – your total tax rate) For example, imagine you pay federal tax at a 24 percent rate and state tax at a rate of 6 percent, and the municipal bond ...

  3. 7 Best Tax-Free Municipal Bond Funds - AOL

    www.aol.com/news/7-best-tax-free-municipal...

    These muni bond funds offer tax-exempt income.Municipal bonds, sometimes referred to as munis, are issued by various government entities such as states, counties and municipalities. 7 Best Tax ...

  4. How Can I Invest Money Without Paying Taxes? 11 Tax-Free ...

    www.aol.com/invest-money-without-paying-taxes...

    Municipal bonds also stand out for providing tax-free interest income. Both options offer significant tax advantages, with Roth IRAs being ideal for long-term retirement savings and municipal ...

  5. Municipal bond - Wikipedia

    en.wikipedia.org/wiki/Municipal_bond

    Interest income from most municipal bonds is excludable from gross income for federal income tax purposes, and may be exempt from state income tax as well, depending on the applicable state laws. [14] Internal Revenue Code section 103(a) is the statutory provision that excludes interest on municipal bonds from federal income tax. [15]

  6. Municipal bond arbitrage - Wikipedia

    en.wikipedia.org/wiki/Municipal_Bond_Arbitrage

    Positive, tax-free carry can reach into the double digits. The bet in municipal bond arbitrage is that, over a longer period of time, two similar instruments--municipal bonds and interest rate swaps--will correlate with each other; they are both very high quality credits, have the same maturity and are denominated in U.S. dollars.

  7. How Tax-Free Municipal Bonds Could Fit Into Your Portfolio

    www.aol.com/finance/tax-free-municipal-bonds-may...

    The interest earned from these bonds is typically exempt from federal taxes and, potentially, […] The post What Are Tax-Free Municipal Bonds and Should You Invest? appeared first on SmartReads ...

  8. Original issue discount - Wikipedia

    en.wikipedia.org/wiki/Original_issue_discount

    The daily portion of the discount uses a compounded interest formula with the principal recalculated every six months. The following table illustrates how to calculate the original issue discount for a $7,462 bond with a $10,000 repayment and a three-year maturity date: [2]

  9. 4 ways to invest in municipal bonds - AOL

    www.aol.com/finance/4-ways-invest-municipal...

    The interest earned on municipal bonds is exempt from federal income tax (and in some cases, state and local tax as well), making them potentially attractive to investors in higher tax brackets.

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