0
A municipal bond is a bond issued by a local government such as cities, states and counties. The bond is usually issued to help finance a large project like building a park or school.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
Where can one buy Municipal Bonds?
Municipal bonds are a federal tax exempted investment issued by local government or their agencies. One can purchase this through an authorized broker.
Where can I purchase municipal bonds from?
Municipal bonds are not actually meant to be bought unless you have a high income tax. They are issued by some agencies and local governments to finance their capital expenditures.
Who can buy US government bonds?
Where you can purchase United States government bonds will depend on the type of bond you would like to purchase. Federal bonds are issued by the federal government, where as municipal bonds are issued by state government.
wHA ARE tAXABLE mUNICIPAL bONDS Are they suitable for IRA investments. Why are they issued compared to Tax Exempt Municipal Bonds?
Taxable municipal bonds are bonds issued by governments (municipal bonds) that are NON-tax exempt (most munis are.) They are often better for IRA investments than tax-exempt bonds because they tend to pay higher interest rates and IRAs are tax exempt anyway. They are issued for a variety of reasons (often, they don't count against a bond issuers' cap) but, in part, because they are a good investment vehicle for IRAs and other tax exempt accounts.
What are the bond types from lowest to highest yield?
The different types of bonds includes Treasury bonds which are released by US government. Agency bonds which are issued by organizations registered or affiliated with US Federal government, municipal bonds which are issued by counties or cities have medium to low yield, Corporate bonds which are issued by companies, have high yields, high yield bonds which are issued by corporations.
Are muni bonds a safe investment?
The muni bonds are fairly safe investment. Thesis municipal bonds are issued by local government or municipalities. In most of the cases the interest earned from these bonds is exempted from income tax.
What are the two types of municipal bonds?
Municipal bonds are either general obligation or revenue bonds.
What is a Municipal Bond and am I exempt from paying tax?
Municipal bonds, which are issued by cities, states and other local government entities, are free from federal taxes. And if the bond is issued in the state in which you live, they're also free of state and local taxes.
Who can issue a municipal bond?
A municipal bond can be issued by the local government or the bonds' agencies. Specifically, the bond's issuing can be including states, cities, counties and a lot of other government entities.
How are municipal bonds used?
Municipal bonds are used to borrow against assets.
Who is responsible for issuing municiple bonds?
Municipal bonds are issued by local governments (town/village, city, county), agencies of the local government, or quasi-independent agencies of the local government.
Why Municipal Bonds Are An Attractive Investment?
Municipal bonds are bonds issued by local governments or their associated agencies to raise money for particular projects. Most often, municipal bonds are issued to build roads, schools and to complete projects such as sewer systems. These bonds offer the bond holder payments of interest over a certain period of time as well as the return of their initial investment. One of the factors that make municipal bonds an attractive investment is the tax exempt status they carry. Interest payments to the bond holder will not be taxed on the federal level and most state and local municipalities will waive the taxes on a local bond. While the interest rates paid on municipal bonds is always lower than other bonds on the market, the tax exempt status outweighs this negative aspect. Another factor to consider is risk. More often than not, municipal bonds have a very low risk associated with their purchase. This is a safer choice when looking into long term investment options. Most bonds are repaid in 20 -40 years. Bonds are rated before they are issued and those with the highest ratings will be the most likely to pay their debt when it is due. Many investors prefer municipal bonds to corporate bonds. Bonds of both types, issued for the same amount, do not produce the same amount of income. Because corporate bonds are heavily taxed a municipal bond will always pay the bond holder more in the long run. Municipal bonds can be purchased directly from the office issuing the bonds at the initial offering or later from a bond holding company. Bond issuing companies are required to use the money within 5 years of issuance to begin the project for which they raised the capital. If the project is cancelled or fails to begin on time, bonds will be repaid with interest and cancelled. Because of the many guarantees that are associated with municipal bonds investors like to stockpile them in their portfolios for the long term. When considering a long term investment a local bond offering may be the correct choice.
