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

The simplest way to achieve this is to buy municipal bonds.

From Barron's

Advisers frequently mention municipal bonds as an important option to consider in the bond portion of the portfolio because they can be tax-free.

From MarketWatch

Strategists say municipal bonds performed better following the passage of the One Big Beautiful Bill Act.

From Barron's

Marc Lichtenfeld, chief income strategist at The Oxford Club, believes that municipal bonds are solid options for higher earners or people living in high-tax states.

From Salon

Are tax-free municipal bonds my best option, or what would you suggest?

From Los Angeles Times