The equivalent taxable yield of a short-term municipal bond currently offering yields of 6% for tax brackets of zero.
What Do Municipal Bonds Do?
Municipal bonds, or "minis," are bonds issued by states, cities, counties, and other government agencies to raise funds to build roads, schools, and various other community projects.
Are municipal bonds a good investment?
Investing in municipal bonds is a great way to preserve capital while earning interest. Most of them are exempt from federal taxes, and some are tax-exempt at the state and local levels. 1 Municipal bonds, also known as “minis,” help build infrastructure in your area.
How do municipal bonds work?
Municipal bonds are structured like standard bond investments with a coupon payment and a one-off payment at maturity. Municipal bonds funds pay regulated distributions to investors from coupon payments and capital gains. Distributions are declared at the Fund's discretion.
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