To contact us Click HERE
A muni bond is a public debt issue by a state, city, local or other municipality that has issued a bond for the purpose of rasing money.
Investors gain a valuable benefit as the interest earned on municipal securities is federally tax free. They are subject to state and local tax. Many investors can avoid all interest taxation if they purchase a bond issued in their primary home state.
There are 2 primary types: Revenue and General Obligation Bonds (GO). A revenue issue is backed by the municipalities collections - such as fees and tolls to support the issue and pay back the bondholders. Bridges and other transportation issues tend to be at least partly revenue backed.
General Obligation Bonds are backed by the taxing power of the municipal authority.
There are tens of thousands of issues currently in the market for investors to buy. Many of the bonds are callable - which means the issuer can redeem the investment early based on a pre-set date and price. Each Muni is rated based on it's credit quality. AAA is the highest rating for a municipal issue - as it is for all other debt securities.
http://www.aitraining.com/municipalbond.htm
Hiç yorum yok:
Yorum Gönder