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This article is from the Investing Articles: Bonds series.

Advantages and Benefits of Tax-exempt Municipal Bonds

Tax-exempt municipal bonds are among the most popular types of investments available today, and with good reason. They offer a wide range of benefits, including:

• Attractive current income free from federal, and, in some cases, state and local taxes;
• High degree of safety with regard to payment of interest and repayment of principal;
• Dependable income;
• Wide range of choices to fit in with your investment objectives with regard to investment quality, maturity, type of bond and geographical location; and
• Marketability in the event you must sell before maturity.

 

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