municipal bonds

municipal bond

noun
a bond issued by a state, county, city, or town, or by a state authority or agency to finance projects.
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American Heritage
Cultural Dictionary

municipal bonds definition


Bonds issued by nonprofit bodies such as cities, public hospitals, and school boards. They bear relatively low interest rates, but accrued interest is exempt from federal income tax.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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