fixed-income-municipal

To calculate tax-equivalent yield (TEY) for municipal bonds, divide the tax-exempt yield by one minus your marginal tax rate. This Skill automates TEY calculations, adjusting for both federal and state tax brackets to compare municipal yields against taxable alternatives.

General Obligation (GO) bonds are backed by the issuer's taxing power, while Revenue bonds are backed by specific project cash flows. This Skill evaluates the credit quality of both GO and Revenue bonds to assess municipal bond risk.

Alternative Minimum Tax (AMT) implications affect municipal bond yields because interest from certain private activity bonds becomes taxable under the AMT. This Skill assesses AMT adjustments to determine the true after-tax yield of your municipal bonds.

Yes, you can compare tax-exempt municipal bonds to taxable corporate bonds using tax-equivalent yield and muni-to-Treasury yield ratios. This Skill calculates these metrics to help you determine relative value for tax-aware fixed income investing.

Yes, this tool requires numpy for fixed income analysis because it utilizes Python scripts for quantitative calculations including TEY, de minimis rule, and yield ratio computations to analyze municipal bonds effectively.

You should apply the de minimis rule to municipal bonds when they are purchased at a market discount to determine if the discount is taxed as ordinary income or capital gains. This Skill calculates de minimis thresholds for accurate tax-aware investing.