The interest they earn is not subject to federal taxes. In this tutorial, you will learn the basic facts about municipal bonds. The projects they finance include hospitals, schools, power plants, office building, airports, etc. Municipalities levy taxes as their first source of revenue.
Individual investors purchase the majority of municipal bonds.
They mature in anywhere from one to fifty years. Like other bonds, they may also be bought at a discount. Municipals are considered relatively safe from default despite some adverse notoriety in past years. Municipal bonds come in a variety of forms. We will discuss those forms below.