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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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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