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Over the last 12 months, interest payments totaled 57 cents a share. Based upon today's NAV of $10.90, that's a return of 5.2%. In addition, there were capital gains paid in the amount of 11 cents a share, for a 1% return. Take away half for taxes, and that's 0.5%. Add it to the interest payments, and you're getting 5.7% - which is very close to what I can get if I were to purchase a couple of muni's on my own.i>

Well why the hell did I do that? Last time I checked, long term captial gains tax was not 50%. =]

So, take away 20% (aren't capital gains 15% fed plus some for state? I've never had to worry about it.), and you have a 0.8% return. Add that to the 5.2% return from interest payments, and you get 6%.

Now that's higher than the yields I found on individual municipal bonds, so I know my example must be flawed somwhere. Is it just a result of the deflated NAV?

Either way, it seems that the fund might not be a bad way to go.. unless I'm missing something (which is always quite likely).

Thanks,
-Ortman
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