Bond:
A bond can be defined as fixed income investment in which an investor gives money to a firm or business (private or governmental) in the form of loan that borrows the money for a particular stated period of time at a fixed or a variable rate of interest. They are used by firms, state, and sovereign governments for the purpose of raising funds and financing different projects and processes. The owners of bonds are called as debt holders or creditors of the issuer of the bonds.
Municipal bonds:
Municipal bonds are a kind of bonds that are issued by the local government or the state government with the objective to meet or achieve their funding requirements to the public.
To determine:
The distinguishing characteristic of municipal bonds.
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