Summary of Municipal Bonds

Municipal bonds are very attractive to investors looking for tax-free income. Because of their backing by local governments, they are considered lower-risk than some other debt issues.

However, municipal bonds often have lower yields than their corporate cousins. For this reason, one must evaluate the taxable equivalent yields of municipal bonds when comparing them to their non-tax-exempt alternatives.

If you need to invest for current income and are in a high income tax bracket, compare various municipal bond offerings to see if they are suitable to your investment objectives.