WHAT ARE TAX-EXEMPT MUNICIPAL BONDS?
Tax-exempt municipal bonds are debt obligations issued by states, cities, counties, and other governmental entities to raise money to build schools, highways, hospitals, and sewer systems, as well as many other projects for the public good. When you purchase a municipal bond, you are lending money to an issuer who promises to pay you a specified amount of interest (usually paid semiannually) and return the principal to you on a specific maturity date. An Investment for Today’s Tax-Conscious Investor Tax-exempt municipal bonds are among the most popular types of investments available today, and with good reason. They offer a wide range of benefits, including: • Attractive current income free from federal, and, in some cases, state and local taxes; • High degree of safety with regard to payment of interest and repayment of principal; • Dependable income; • Wide range of choices to fit in with your investment objectives with regard to investment quality, maturity, type of bond and geograp
