Buying Municipal Bonds For Dummies File

: The muni market is fragmented; it can be difficult to sell a specific bond quickly without a price penalty. Is it Worth it? The "Tax-Equivalent Yield"

: An issuer may "call" or repay the bond early, typically when interest rates drop. This forces you to reinvest your money at a lower rate. buying municipal bonds for dummies

: The primary draw is that interest is typically exempt from federal income tax. : The muni market is fragmented; it can

: Over long periods, the purchasing power of your fixed interest payments may be eroded by rising prices. : The muni market is fragmented

: They provide a predictable, fixed stream of income, usually paid out twice a year. Common Types of Municipal Bonds