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

 

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