Yield

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Municipal bonds and notes are sold to a stated yield. This can be priced to the call date or the maturity date.

Once the yield is known, you can figure out the tax free return based on your tax brackets and the stated yield. You take the YTM and divide it by 100 minus the tax bracket. The higher the bracket - the higher the rate of return.

Muni bonds can be quoted based on the price or yield. Term bonds, which have one maturity will be quoted in price. Serial bonds - which are several maturities of an issuer does not quote on price.

The yield to call may be greater, equal or less than the basis or YTM.

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