municipal bond Synonyms
No Synonyms and anytonyms found
municipal bond Meaning
Wordnet
municipal bond (n)
a bond issued by a state or local government
municipal bond Sentence Examples
- Municipal bonds, tax-exempt securities issued by local governments, offer investors a steady stream of interest income.
- The interest earned on municipal bonds is generally exempt from federal and state income tax, making them attractive to investors seeking tax-advantaged investments.
- Municipal bonds are typically used to finance essential infrastructure projects, such as roads, bridges, and schools.
- The creditworthiness of a municipal bond is determined by the financial health of the issuing municipality.
- Municipal bonds can be either general obligation bonds or revenue bonds, with the former being backed by the full faith and credit of the issuer and the latter being backed by specific revenue streams.
- Tax-exempt municipal bonds are especially beneficial for investors in higher tax brackets, as they can significantly reduce their tax liability.
- Municipal bonds are typically long-term investments with maturities ranging from 10 to 30 years.
- Investing in municipal bonds can provide investors with a reliable source of income and diversification within their fixed income portfolios.
- Municipal bonds are often used by state and local governments to raise capital for essential public services, such as education, healthcare, and transportation.
- The yield on municipal bonds is typically lower than that of corporate bonds, due to their tax-exempt status.
FAQs About the word municipal bond
a bond issued by a state or local government
No synonyms found.
No antonyms found.
Municipal bonds, tax-exempt securities issued by local governments, offer investors a steady stream of interest income.
The interest earned on municipal bonds is generally exempt from federal and state income tax, making them attractive to investors seeking tax-advantaged investments.
Municipal bonds are typically used to finance essential infrastructure projects, such as roads, bridges, and schools.
The creditworthiness of a municipal bond is determined by the financial health of the issuing municipality.
