Ever since the US income tax was instituted in 1913, there has been a special carve out for municipal bonds, i.e., the debt obligations of states and municipalities. The interest these bonds pay is federal income tax-free. These bonds are also usually tax-free in the state of issuance. ...
8 Best Performing 401(k) Funds This mix of active and passive funds spans various investment strategies. Coryanne HicksDec. 27, 2024 Small-Cap ETFs to Buy for Growth Conditions are favorable for these seven small-cap ETFs that have strong growth momentum entering 2025. ...
The article provides information on municipal-bond funds. Mutual funds hold 30% of all U.S. municipal bonds, 23% of U.S. stocks and 11% of U.S. and foreign corporate bonds. Short-term national municipal funds have performed the best so far in 2007, according to Morningstar Inc. ...
The municipal bond market is volatile and can be significantly affected by adverse tax, legislative or political changes and the financial condition of the issues of municipal securities. Interest rate increases can cause the price of a bond to decrease. Income on municipal bonds is free from fede...
Municipal Bonds A Municipal Bond is usually issued by local Governments to finance public projects such as roads, schools, and airports. You will recieve you lump sum and interest back at the end of the term. Corporate Bonds A Corporate Bond is issued by businesses to raise funds for expansio...
municipal bondrefunded bondSummary This chapter provides the analytical framework for determining the structure and credit quality of municipal bonds that have been refunded. Refunded bonds are discussed in terms of: the general structure of an escrow fund, the reasons why bond issuers refund their ...
What percentage in large-cap, mid-cap, small-cap stocks, domestic and international stocks, corporate bonds and municipal bonds? As you can see, there are many asset classes to consider and each one should be diversified. A common cause of "diworsification" is doubling up on exposure to...
Many municipal bonds are callable or redeemable before the maturity date. A callable bond usually falls into one of these categories: Optional Redemption. This gives the municipality the option, but not the obligation, to redeem the bond after a certain amount of time. ...
The spread increases when the difference between the municipal bonds contract and the Treasury bond contract widens. This widening happens when the yields of the municipal contract are rising more quickly than the Treasury bond contracts. The spread narrows when the return of the Treasury bond contra...
Municipal bonds( called “munis”) are debt securities issued by states, cities, or counties to fund public projects or operations. Like other type of bonds, they can also provide steady interest cash flow for the investors. Additionally, these bonds typically offer tax advantages since the inter...