Municipal bonds are a way for governments such as state, county and other governmental entities to borrow money from people. When a person buys a municipal bond, the government owes that person their money back with interest. The interest is paid on a regular basis, which may be monthly or semiannually, and when a specific time has passed, called the maturity date, the government must repay the original purchase price. The main uses of these bonds are to build schools, repair or build roads, upgrade or add new sewer systems, build hospitals and other projects that are for the public…
Investing in Municipal Bonds
