Bond Basics Part 4: Useful Charts and Definitions

Bennet Sedacca
  2013-12-24 12:49:04


Be Sure You Pay the Right Price

Credit Ratings

Credit Risk Moody's Standard & Poor's Fitch
Prime Aaa AAA AAA
Excellent Aa AA AA
Upper medium A A A
Lower Medium Baa BBB BBB
Speculative Ba BB BB
Very Speculative B, Caa B, CCC, CC B, CCC, CC, C
Default Ca, C D DDD, DD, D

Taxable Income

10% 15% 25% 28% 33% 35% 36%
Single Return $0-$7,300 $7,300-$29,700 $29,701-$71,950 $71,951-$150,150 $150,151-$326,450 $326,451 & over Sample effective marginal rate for certain
Joint Return $0-$14,600 $14,601-$59,400 $59,401-$119,950 $119,951-$182,800 $182,801-$326,450 $326,451 & over High income tax payers

Tax-Exempt Yields and Their Taxable Yield Equivalents

Terms & Definitions

Some data in this presentation was retrieved from Bloomberg LP, Ibbotson and We thank them for their very useful information.

Be sure to read the rest of the Bond Basics series: