Municipal Securities Flashcards

1
Q

Municipal interest is tax exempt at what level?

A

Federal.

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2
Q

Who are municipals appropriate for?

A

Investors in a high marginal tax bracket seeking income

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3
Q

What are municipals NOT suitable for?

A

Retirement accounts

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4
Q

GO bonds

A

Backed by the full faith and credit of the issuing municipality (safety)

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5
Q

Revenue bonds

A

Backed by user fees

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