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Emphatically, this is NOT a dumb question. As a generalization it is correct but the Tax Code has a variety of "gimmics" that make it tough to apply.

There is a concept that sales persons apply to municipal bonds and funds call "tax-equivalent yield". This attempts to equate after tax returns on taxible bonds to municipal yields. You can see it and the formula in any promo for municipal bonds or find it on a municipal bond site. It's interesting, perhaps even useful in some cases.

But like all promotions it ignores the basics of bonds which are two in number.

1. The return OF your money is first.
2. The retune ON your money is second.

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