Municipal bonds are issued by cities, counties and states in order to pay for municipal or public projects. These bonds are exempt from federal, state and local taxes. The level of return on these bonds can be high.
a bond issued by a state or local government or by a nonfederal government agency, usually to provide funding for a specified purpose
An often tax-exempt bond issued by a city, county, state, or other government for the financing of public projects.
municipal bond - Investment & Finance Definition
bond that is issued by a city, state, or local government agency or entity,
such as a school district, to finance public works projects or raise money.
Municipal bondholders don’t have to pay federal income tax on interest received
from municipal bonds and also may be exempt from state and local taxes. Also
municipal bond - Legal Definition
issued by a city or other municipal entity.