| Municipal Bond |
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A
debt security issued by a state, municipality or county to finance
its capital expenditures. Municipal bonds are exempt from federal
taxes and most from state and local taxes, especially if you live
in the state the bond is issued.
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Such
expenditures might include the construction of highways, bridges or
schools. "Muni's" are bought for their favorable tax implications
and are popular with people in high income tax brackets.
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