Municipal bond

Municipal bonds or munis in the United States are bonds issued by states, cities, and counties, or their agencies. Potential issuers of municipal bonds include cities, counties, redevelopment agencies, school districts, publicly owned airports and seaports, and any other governmental entity (or group of governments) below the state level. Municipal bonds are guaranteed by a local government, a subdivision thereof, or a group of local governments, and are assessed for risk and rated accordingly. Interest income received by holders of municipal bonds is often tax exempt from Federal taxes and state taxes (from the state in which they are issued), although municipal bonds issued for certain purposes may not be tax exempt.

Related Topics:
United States - Bond - Local government - Tax exempt - Tax

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