The total amount of money required to meet the annual principal and interest payments when due. Debt service coverage For revenue bonds, a ratio of how many times the net project revenues exceed the total annual debt service due in the same period. A bond that is selling, or was issued, at a dollar price below the par value. Face amount The par value of a bond. A bond backed by a municipality's full faith and credit to meet the annual debt service expense.
Interest dates The specific dates on which the bondholder receives interest income.
Municipals typically pay interest semiannually, usually on the 1st or the 15th of the month. The annual tax-free interest paid. Issuer The state, municipality or other governmental authority that is issuing the bonds. The opinion of a qualified law firm stating that the municipal bonds being offered for sale are validly issued. The opinion often includes a statement indicating the tax-exempt status of the income.