Municipal Bonds Overview

Municipal Bonds, also known as Municipal Securities, are legally issued documents that represent a promise by state or local governments to repay the lenders their principal investment plus additional interest which is predetermined at a fixed rate. Municipal bonds can take anywhere from 1 year to 40 years to fully mature - the lender may not cash in their bond until its maturity date. These bonds have been used to finance an enormous amount of projects that may have otherwise never been completed or even gotten underway. They include, but are not limited to, the following:

• Elementary and other school buildings
• Government office buildings
• Streets and roads
• Research laboratories, higher-education buildings
• Transportation facilities
• Sewage treatment plants
• Hospitals
• Low-income housing