Company: RFMZ
Filing Date: 2025-09-05
Form Type: N-CSR
Source: 0001398344-25-017693
Chunk: 6

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-09-05
Form: N-CSR
Chunk 6
---
Tactical Municipal CEF strategy and 63% to the MacKay Municipal Bond Income Strategy. The credit quality distribution was 94% investment
grade, 4% not rated and 2% high yield.

RiverNorth Flexible Municipal Income Fund II, Inc.

DEFINITIONS

The Bloomberg U.S. Municipal Bond Index is
an unmanaged index made up of a representative list of general obligation, revenue, insured and pre-refunded state and local bonds. The
index is frequently used as a general measure of tax-exempt bond market performance. The index cannot be invested in directly and does
not reflect fees and expenses.

An “AAA” municipal yield curve
is derived from market estimates of yields for bonds with the highest ratings levels in the municipal market.

Credit ratings are measured on a scale that
generally ranges from AAA (highest) to D (lowest). All fund securities except for those labeled “Not Rated” and “Other”
have been rated by Moody’s, S&P or Fitch, which are each a Nationally Recognized Statistical Rating Organization (“NRSRO”).

A yield curve is a line that plots yields (interest
rates) of bonds having equal credit quality but differing maturity dates. The slope of the yield curve gives an idea of future interest
rate changes and economic activity.

Duration is a measure of the sensitivity of
the price of a bond or other debt instrument to a change in interest rates. Duration is non-linear and accelerates as time to maturity
lessens.

The Bond Buyer is the only independent information
resource serving the entire municipal finance community.

The Municipal/U.S. Treasury Ratio is a tool
used to compare the yields of tax-exempt municipal bonds to those of taxable U.S. Treasury bonds of the same maturity. It’s a key indicator
for investors seeking to assess the relative value and attractiveness of municipal bonds compared to Treasuries.

Leverage, the use of borrowed money to invest,
is a strategy that can be employed by closed end funds in an effort to potentially increase income and enhance returns.

A coupon or coupon payment is the annual interest
rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.

A premium coupon refers to a coupon rate that is higher than the
prevailing market rate.

A general obligation bond is a municipal bond
backed solely by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project.

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