Income Beginner: Introduction to Municipal Bonds

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1.
The two types of municipal bonds are revenue and agency bonds.
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False. The two types are revenue and general obligation bonds.
2.
In addition to receiving income from municipal projects, some revenue bonds may be secured by _______.
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Private endowments. Individual or corporate investors may donate funds to help pay off a revenue bond issue.
3.
Insured bonds pay interest rates that are _______ those of non-insured bonds.
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Lower than. The insurance makes them safer in the eyes of investors, so issuers can offer lower interest rates.
4.
Municipal bonds are sold by all but which of the following?
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The federal government. This entity sells only US government bonds.
5.
Of the following tax brackets, which one will leave you with the highest yield on a municipal bond compared to a taxable bond?
Choose wisely. There is only one correct answer.
35 percent. The higher the tax bracket, the more you earn when the bond is compared to a taxable bond.