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Investments glossary

Municipal Bond


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Quotes of the day:

Chains are chains even if made of gold, they just tie you.

— Patrick Mahony

A municipal bond is a debt security issued by a state, municipality or county to finance its capital expenditures, including the construction of highways, bridges or schools. They can be thought of as loans that investors make to local governments. Municipal bonds are exempt from federal taxes and most state and local taxes, making them especially attractive to people in high income tax brackets.


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