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Muni bonds should be owned within your taxable brokerage accounts, harmful . " in your IRA or 401K accounts because income in those accounts is already tax-deferred. Next, subtract the decimal equivalent rate from distinct.00. Multiply this sum by the decimal equivalent produce. Using the same example, for a pre-tax yield of.044 also rate of a.25 (25%), your equation is (1.00 lectronic.25) x.044 =.033, for an after tax yield of 3.30%. This is determined by multiplying the after tax yield by 100, in order to express it to be a percentage.

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