Municipal bond definition

Municipal bond is bond issued by local municipality such as state, city, or local government (often to finance specific building projects). Interest on Municipal bonds is generally exempt from federal taxes and in some cases from state taxes. Municipal bonds are generally viewed as safer than corporate bonds since municipalities are less likely to become bankrupt than corporations.

Investor Dictionary

A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z