Municipal Bonds

Question 1

MUNIs are issued by?

Answer 1

State, city and county

To raise capital for their day to day operations

Also issued by;
State treasures
School districts
Highway department
Other public authorities

To finance specific projects such as public education, highway construction, stadiums and mass transit systems

Question 2

MUNIs are exempt from?

Answer 2

REGISTRATION

Exempt from federal government oversight

Do NOT NEED A PROSPECTUS

Question 3

MUNIs, Instead of a prospectus, they publish an official statement containing?

Answer 3

Detailed information about the bonds and the financial condition of the issuer

Question 4

With MUNI’s, Investors do or do not pay federal taxes on the interest?

Answer 4

DO NOT

TAX FREE AT STATE AND LOCAL if you live in the municipality “TRIPLE TAX-FREE BONDS

Question 5

MUNIs offer lower or higher yields than Corporate Bonds?

Answer 5

LOWER - Due to them being tax exempt for the investor

GOOD FOR INVESTOR Because they pay lower interest rates to investors