Definitions for municipal bond
This page provides all possible meanings and translations of the word municipal bond
Random House Webster's College Dictionary
a bond issued by a state or local authority to finance projects.
Origin of municipal bond:
a bond issued by a state or local government
A municipal bond is a bond issued by a local government, or their agencies. Potential issuers of municipal bonds include states, cities, counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and seaports, and any other governmental entity at or below the state level. Municipal bonds may be general obligations of the issuer or secured by specified revenues. In the United States, interest income received by holders of municipal bonds is often exempt from the federal income tax and from the income tax of the state in which they are issued, although municipal bonds issued for certain purposes may not be tax exempt. Unlike new issue stocks that are brought to market with price restrictions until the deal is sold, municipal bonds are free to trade at any time once they are purchased by the investor. Professional traders regularly trade and retrade the same bonds several times a week.
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"municipal bond." Definitions.net. STANDS4 LLC, 2014. Web. 23 Aug. 2014. <http://www.definitions.net/definition/municipal bond>.