Fixed Income Home Taxable Fixed Income Municipal Securities Mortgage Backed Securities Taxable Equivalent Yield Chart Interest on most municipal bonds is exempt from federal taxes. The interest on bonds issued within a state is also often exempt from state and local taxes of that state.
Most states also exempt the interest on same-state bonds from state and local taxes.
Taxable equivalent yields for investors in many states who own same state bonds may be higher. The taxable income brackets to which the tax rates apply are adjusted annually for inflation. Those listed above are estimated for 1998. Investors should check with their accountant, attorney or other investment advisor for specific tax information. We will be happy to provide a prospectus, when available, and other information upon request.