municipal bonds

Cultural  

1. 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.

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Example Sentences

Treasury bonds and notes, high-quality AAA-rated corporate bonds and municipal bonds for tax-efficient income.

From MarketWatch • Jun. 2, 2026

Treasurys, says Andrew Clinton, CEO of Clinton Investments in Stamford, Conn. “For those in high tax brackets, the taxable equivalent yields of municipal bonds are often higher than those of taxable CDs and Treasurys.”

From MarketWatch • Mar. 31, 2026

“For all the news about state budgets and immigration enforcement, people are just hoovering up” all the municipal bonds they can find, said Matt Fabian, president of Municipal Market Analytics.

From The Wall Street Journal • Feb. 12, 2026

Heather Gillers covers pension funds, insurance and municipal bonds for the Wall Street Journal.

From The Wall Street Journal • Feb. 2, 2026

Before becoming a depository, the bank must furnish as security government, state, or municipal bonds, the limit of deposits being an amount equal to the paid-up capital and one-half the surplus....

From Readings in Money and Banking Selected and Adapted by Phillips, Chester Arthur