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Municipal Bond
A municipal bond is a bond issued by a state, city
or any other local government, or their agencies in
the United States. Potential issuers of municipal bonds
embrace of cities, counties, redevelopment agencies,
school districts, publicly owned airports and seaports,
and any other governmental entity below the state level.
Consequently, Municipal bonds are surely guaranteed
by a local government, a subdivision thereof, or a group
of local governments, and are reviewed for risk and
rated. Interest income received by holders of municipal
bonds is often not liable from the federal income tax
and also from the income tax of the state in which they
are subjected, though municipal bonds issued for certain
purposes may not be tax exempt. Moreover, the characteristics
of Municipal bond are taxability and risk.
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