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Municipal bonds are either general obligation or revenue bonds.
There are two types of tax free Municipal Bonds. The first is called a General Obligation and is usually the safer because it is backed by the issuer's ability to tax. Revenus Munis is the other tax free bond.
There are covalent bonds found in TTX and a covalent bond is a sharing of two electrons between two atoms in a molecule.
ionic and covalent
O3
Low risk investments generally corresponds with low level returns. Two examples of low risk investments would be investment-grade corporate bonds and uninsured municipal bonds.
These are termed to be 'covalent bonds'.
A municipal bond is issued by a government, city, or other agency. There are many potential issuers of a municipal bond. School districts, public utilities, counties, redevelopment agencies, and other organizations can issue these bonds. The municipal bond can be specified revenues or general obligations of the issuer. Additionally, the interest income that is received from these bonds is usually tax exempt from federal and state taxes. Furthermore, there are different types of municipal bonds. The municipal bond can also be called a municipal security. The short-term issues mature in one year or less. The bonds that take longer to mature are called long-term issues. The general purpose of short-term issues is to raise money for a particular purpose. Many times these bonds are used to raise money in anticipation of taxes, state or other federal aid payments, and future bond issuances. During hard times, this revenue can be used to cover deficits that are unexpected, or the monies can be used to cover irregular cash flow. In cases where long term financing can not be secured quickly, the municipal bond can raise revenue to finance the project. There are two main type of municipal bonds. First, the general obligation bond is secured by the full faith of the issuer. The purchaser has confidence that the principle and interest will be repaid by the issuer. This issuer generally has the power to tax the public, and this ability can be limited or unlimited. Second, the revenue bonds are funded by direct revenues from tolls, rents, or charges. Many public projects are financed by revenue bonds. Airports, bridges, toll bridges, waste and sewer projects, and many more things are the result of financing from revenue bonds. The municipal bond in these cases are directly issued by a special authority. Furthermore, a municipal bond is usually issued in certain denominations. The minimum denomination is $5,000. The bonds also bear interest at a fixed or variable rate. The issuer receives the cash up front, and the issuer must give a promise to repay the principle and interest of the municipal bond. Repayment periods can be as short as a few weeks, or the repayment period can be long term. In some cases, the municipal bond may not be paid back until 40 years later.
Ions and molecules are the results of two different types of bonds. Ions are the result of ionic bonds and molecules are the result of covalent bonds.
When two different substances combine by making chemical bonds, the result is another chemical compound.
A tax free municipal bond is a bond offered by some form of local government. This may be your county or city. Two places to learn more: http://en.wikipedia.org/wiki/Municipal_bond and http://www.morganstanleyindividual.com/markets/bondcenter/school/faq/default.asp
There is one government agency - Security and Exchange Commission (SEC) and two Self Regulating Organizations (SROs) who mandate or administer regulations for stocks and bonds: NASD (They recently changed the name to FINRA) and MSRB. * SEC regulates stocks, treasury securities, and municipal bonds * FINRA administers regulations by SEC for Over The Counter stocks (e.g., the stocks traded on NASDQ). * MSRB administers regulations by SEC in relations to Municipal Stocks. * Corporate bonds and notes are hardly regulated, since thy mostly trade in Over The Counter markets.