Saturday, December 16th 2017

Question

What are advantages of municipal bonds?

Interesting Question?   (1)   (7)



Answers (1)

19th Nov 2009 by Daniel Cross, ChFC

Investing in municipal bonds, or Muni-bonds as they're more commonly called, has a very distinct advantage that virtually no other investment has. Interest income on them is free of federal, state, and even local taxation depending on the type of bond purchased. In order to get a realistic rate of return than you can expect to get, you'll need to know your own tax bracket. Then you can calculate it like so: municipal interest rate = corporate bond you are comparing * 100% - your tax bracket. That will tell you that the muni-bonds rate that you calculate is equal to the corporate bond rate that you are comparing it with.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



19th Nov 2009 In Bonds 1 Answers | 331 Views
Subjects: municipal bonds,

Answer This Question / Give Your Opinion
What are advantages of municipal bonds?


Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *


Give Your Opinion
What Insurance products and services do QBE provide in Australia?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What Insurance products and services do QBE provide in Australia?
Unanswered Questions in Bonds
What is the municipal bond secondary market?
What are Treasury bond rates?
What are the advantages in investing in bonds?
What are the different types of long term bonds?
What are the disadvantages in investing in shares?

Answered Questions in Bonds
What are the different types of municipal bonds?
What is a junk bund?
What is a tax exempt bond?
How are bond prices quoted?
Where to buy bearer bonds?
Ask A Question
Get opinions on what you want to know:
Specific to any country?