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How are prices and yields determined in the municipal market?

April 26, 2017market municipal prices yields

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How are prices and yields determined in the municipal market?

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Municipal bonds are bought, sold and priced on the basis of credit quality, maturity, liquidity and yield. The municipal bond market is a dealer market and bond dealers compete with each other for customers on the basis of yield as well as service. Each bond dealer prices the bonds he or she offers at a yield which takes into consideration a number of factors.