Answered: What is municipal bond?

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What is municipal bond?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 12DQ

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What is municipal bond?

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Answer:

A municipal bond is nothing but bond issued by a territorial or local government, or one of its organizations. It is typically used to fund services related to finance like schools, bridges, airports as well as improvements associated with infrastructure. These are also called as muni-bonds. General obligation and revenue bonds are the two types of municipal bonds.

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