Municipal Bond

What does it Mean? A debt security issued by a state, municipality or county to finance its capital expenditures. Municipal bonds are exempt from federal taxes and from most state and local taxes, especially if you live in the state in which the bond is issued.

Also known as a "muni".
Investopedia Says... Municipal bonds may be used to fund expenditures such as the construction of highways, bridges or schools. "Munis" are bought for their favorable tax implications, and are popular with people in high income tax brackets.

Terms Related Links

De Minimis Tax Rule
Earmarking
Mello-Roos
MOB (Municipals-over-Bonds) Spread
Municipal Bond Fund
Overlapping Debt
Private Purpose Bond
Sub-Sovereign Obligation - SSO
Tax Equivalent Yield
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Terms Related Links
The Basics of Municipal Bonds - Investing in these bonds may offer a tax-free income stream but they are not without risks.

Retirees Can't Count On Muni Bonds - Interest may not be tax-exempt for seniors with Medicare or Social Security benefits.

Get A Short-Term Advantage In The Money Market - This investment vehicle is often the perfect stop-gap measure for growing your money.

Municipal Bond Tips For The Series 7 Exam - Learn to distinguish between general obligation and revenue bonds to ace this test.

Immediate Annuities: More Income and Lower Taxes - These instruments may shed their bad rap to bring you a hefty tax break.

Fatal Seduction Of The Municipal Bond Insurers - Learn how a foray into CDOs and other exotic products ruined an industry's image.

Bond Taxation Rules - Several factors affect the taxable interest that must be reported. Learn more here.

Weighing The Tax Benefits Of Municipal Securities - Find out how to determine whether the tax exemption offered by "munis" benefits you.

Avoid Tricky Tax Issues On Municipal Bonds - Learn the rules every investor should know before buying into this "tax-free" investment.

Fatal Seduction Of The Municipal Bond Insurers - Learn how a foray into CDOs and other exotic products ruined an industry's image.

Bond Basics: Different Types Of Bonds - Learn how to choose between bills, notes or bonds.

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