Municipal Bonds
Description
This article is from the What Every Investor Should Know.
Municipal Bonds
Rating agencies also evaluate the bonds issued by state and local governments and their agencies, taking into consideration such factors as the tax base, population statistics, total debt outstanding, and the area's general economic climate. There are different types of municipal bonds. Some are general obligation bonds that are secured by the full faith and credit of a state or local government, and are backed by its taxing power. Others are revenue bonds that are issued to finance specified public works, such as bridges or tunnels, and are directly backed by the income from the specific project.
Prices of most municipal bonds are not usually quoted in daily newspapers. The investor interested in a particular bond issue should consult bond dealers for their current prices. Your public library may also have copies of a municipal bond guide or a "Blue List."
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