Discusses municipal bond financing and its implication to income distribution. Advantage to less-affluent communities; Parties sharing in the benefit of the bond's nontaxability; Difference in the preferred method for financing a school house in a high- and low-income area.Fortune...
Bond: An instrument that shows the indebtedness to the issuers of the bonds. Municipal bonds and corporate bonds are the common types of bonds that are issued to the general public. Bonds can be in mutual funds also. Answer and Explanation:1 The advantages of issuing bonds for financing are ...
If you've ever seen a "buy war bonds" World War II poster, the bonds in question are savings bonds. The U.S. government createdsavings bondsin 1941 to help pay for the war and continues to issue them today, providing investors with a low-risk, tax-advantaged means of saving. Savings...
However, I have pointed out that any superior record which we might accomplish should not be expected to be evidenced by a relatively constant advantage in performance compared to the Average. Rather it is likely that if such an advantage is achieved, it will be through better-than-average per...
The key advantage ofMunicipalsis that it offers youtax free gainswhether held for retirementinside or outside of your retirement accounts—but are generally more suited for outside of your account due to not being taxable at the Federal and in many cases local or state level. ...
Advantages of corporate bonds Regular cash payment.Bonds make regular cash payments, an advantage not always offered bystocks. That payment provides a high certainty of income. Less volatile price.Bonds tend to be much lessvolatile than stocksand move in response to a number of factors such as ...
of Obama and Trump administration policies that limit the tax advantage for municipal bonds. Because reductions in the tax advantage inflate bidder markups and depress competition, the resulting increase in municipal borrowing costs more than offsets the tax savings to the government. Finally, we use...
“Right now, high-yields bonds are not giving you that extra advantage while high-quality investment-grade corporate bonds are more attractive right now,” Burson says. “We will be watching to see if the spread widens out, then re-evaluate.” ...
Another advantage of bonds is that they usually offer higher interest rates than CDs. However, the reason for that is the key drawbacks of bonds. CDs are insured by the FDIC but bonds have no such protection. It's possible for the bond issuer to default, which would cause you to lose ...
Checking accounts have one major advantage over MMAs—unlimited transactions (checks, ATM withdrawals, wire transfers, and so forth). They are also FDIC- or NCUA-insured.1This makes checking accounts perfect for daily financial transactions, such as writing checks, electronic bill payments, and acce...