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

Municipal bonds were the original socially responsible investment.

From New York Times • Oct. 16, 2021

Municipal bonds are typically issued by states, cities and school districts to fund operations and projects, and contain tax advantages over corporate and U.S. government bonds.

From Reuters • Sep. 17, 2021

Municipal bonds will be granted special treatment in the composition of bank capital, incentivising lenders to load up on them.

From Economist • May 24, 2018

Municipal bonds are the fourth-biggest class of debt behind federal debt, mortgages, and corporate debt.

From Slate • Jun. 8, 2017

Municipal bonds are issued by cities and other municipalities to raise money for local improvements.

From Up To Date Business Home Study Circle Library Series (Volume II.) by Eaton, Seymour