Municipal bonds, or munis, are bonds issued by municipalities to fund public projects, providing stable investment opportunities with the benefit of federally tax-exempt interest payments.
Though municipal bonds are seen as low-risk investments, they still come with interest rate risks and the potential for issuer default, demanding careful consideration.
The interest payments from municipal bonds can be federally tax-exempt, making them attractive for retirees looking for stable income and tax savings.
Investing in municipal bonds can offer steady income, but it's crucial for investors to be aware of potential pitfalls like fluctuating prices and default risks.
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