Bonds

How To Arbitrage Bonds?

The refinancing of a municipality’s higher interest rate bond with a lower interest rate bond before the higher interest rate bond’s call date is known as an arbitrage bond. When the economy’s interest rates and bond yields are falling, the approach of issuing arbitrage bonds is most beneficial. To make the arbitrage worthwhile, the coupon

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How Tax Free Bonds Work?

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. Is it wise to invest in tax-free bonds? Municipal bonds are an

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