Municipal bonds (sometimes referred to as “munis”) are fixed-income investments that offer better after-tax returns than comparable taxable corporate or government issues. Interest paid on municipal bonds is generally excluded from federal taxes and, in some cases, state and local taxes as well. Which municipal bonds are free from taxes? Bonds issued by corporations. At […]

Municipal bond interest is tax-free in the United States, however there may be state or local taxes, or both. Be aware that if you receive Social Security, your bond interest will be recognized as income when determining your Social Security taxable amount. This could result in you owing more money. Municipal bond interest rates are […]

Residents of the issuing state are generally excluded from federal and state taxes on income earned from municipal bonds. While interest income is tax-free, any capital gains delivered to the investor are taxable. Is it true that municipal bond money are tax-free? A municipal bond fund is a type of mutual fund that invests in […]

Fixed-income securities include Treasury bonds and bills, municipal bonds, corporate bonds, and certificates of deposit (CDs). Bonds are traded on the bond market and secondary market over-the-counter (OTC). Do bonds have a guaranteed return? Bond prices fall when interest rates rise, thus the bonds you own lose value. Bond market price volatility is mostly caused […]

Callable bonds include most municipal bonds and some corporate bonds. A call feature on a municipal bond can be used after a specific amount of time, such as ten years. Which bonds can’t be called? Bond that is not callable The US Treasury Stock is one of the most common non-callable bonds. Stocks in the […]

Bonds issued by government-sponsored enterprises (GSEs) or US government agencies are known as US government agency bonds. GSEs are non-profit organizations founded with a public purpose and funded by the federal government. Typically, agency bonds are issued in $1,000 denominations. The Federal Home Loan Banks (FHLB) and the Federal Farm Credit Banks (FFCB), which are […]

Agency bonds are one of the safest investments in the world of fixed-income securities, and they’re often likened to Treasury bonds (T-bonds) because of their low risk and great liquidity. Unlike Treasury bonds, which are issued solely by the United States Treasury, agency bonds are issued by a variety of entities, including not only government […]

State and local taxes may not apply to bonds issued by the federal government. Federal, state, and local taxes may not apply to bonds issued by state or local governments. What are the tax implications of 30-year Treasury bonds? The history of the United States’ national debt may be traced back to the Revolutionary War. […]

Treasury bonds can be a useful investment for people seeking security and a fixed rate of interest paid semiannually until the bond’s maturity date. Bonds are an important part of an investing portfolio’s asset allocation since their consistent returns serve to counter the volatility of stock prices. Bonds make up a bigger part of the […]

The history of the United States’ national debt may be traced back to the Revolutionary War. Many states issued debt certificates, bonds, and other types of IOUs to assist war efforts. Unfortunately, most states were unable to pay their financial obligations before the end of the war. Alexander Hamilton, the first Secretary of the Treasury […]