Income Beginner: Introduction to Municipal Bonds

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1.
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.
2.
Which of the following is not used to secure a revenue bond?
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Sales tax. Revenue bonds are secured by the revenues of projects they fund.
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.
Why are municipal bonds sold to the public?
Choose wisely. There is only one correct answer.
To raise money to finance operations or projects. Like all forms of government bonds, municipals pay for these expenditures.
5.
The two types of municipal bonds are revenue and agency bonds.
Choose wisely. There is only one correct answer.
False. The two types are revenue and general obligation bonds.