| TAXABLE EQUIVALENT YIELD | ||||
| Compare the higher taxable yield required to match the tax-free settlement annuity rate at various levels and tax brackets (i.e. a 5.5% tax-free annuity would be the same as a guaranteed 8.21% taxable yield for an individual in the 33% tax bracket) | ||||
| Tax-free rate | 15% tax rate | 28% tax rate | 33% tax rate | 35% tax rate |
| 3.0% | 3.53 | 4.17 | 4.48 | 4.62 |
| 4.0% | 4.71 | 5.56 | 5.97 | 6.15 |
| 5.0% | 5.88 | 6.94 | 7.46 | 7.69 |
| 5.5% | 6.47 | 7.64 | 8.21 | 8.46 |
| 6.0% | 7.06 | 8.33 | 8.96 | 9.23 |
| 6.5% | 7.65 | 9.03 | 9.70 | 10.00 |
| 7.0% | 8.24 | 9.72 | 10.45 | 10.77 |
| 7.5% | 8.82 | 10.42 | 11.19 | 11.54 |
| 8.0% | 9.41 | 11.11 | 11.94 | 12.31 |
| 8.5% | 10.00 | 11.81 | 12.69 | 13.08 |
| 9.0% | 10.59 | 12.50 | 13.43 | 13.85 |
