Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the risk of a municipal bond?

April 26, 2017Bond municipal risk

0

Posted

What is the risk of a municipal bond?

1 Answer

0

Posted

If you want to sell a municipal bond before the maturity or call date, you additionally bear the market risk of price fluctuations. These fluctuations will be mainly due to expectations about future interest rate changes in the market (e.g., Fed Fund Rate by FOMC).