Bond Essentials
What are bonds?
Municipal bonds are debt obligations issued by states, cities, counties and other governmental entities to raise money to build schools, highways, hospitals and sewer systems, as well as many other projects for the public good.
Tax Benefits
Tax-exempt municipal bonds are among the most popular types of investments available today, and with good reason.
Types of Bonds
Municipal securities consist of both long-term and short-term issues. The two basic types of municipal securities are general obligation bonds and revenue bonds.
Risks & Rewards
When you invest in any bond, your primary concern should be the issuer’s ability to meet its financial obligations. Issuers of municipal bonds have an outstanding record of meeting interest and principal payments in a timely manner.
Understanding Yields
There are basically two types of bond yields you should know about: current yield and yield to maturity.
Bond Glossary