Issued by corporations, these financial instruments fund their long-term financing requirements and have less risk than equity s

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Juliette [100K]

2 years ago

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Issued by corporations, these financial instruments fund their long-term financing requirements and have less risk than equity s

ecurities.

Business

1 answer:

GalinKa [24] · Answer 1 · 2023-08-06T05:10:36+03:00

These financial instruments, which firms issue to meet their long-term funding needs, have less risk than equity securities. also called municipal bonds.

<h3>What are municipal bonds?</h3>

Municipal bonds are a good option to think about if your main goal in investing is to keep your money safe while producing a stream of tax-free income. Governmental bodies can issue debt instruments called municipal bonds (munis). In exchange for a preset number of interest payments made over a predetermined time period, you are lending money to the issuer when you purchase a municipal bond. When that time period is up, the bond reaches its maturity date and you receive a full refund of your initial investment. to the issuer when you purchase a municipal bond. When that time period is up, the bond reaches its maturity date and you receive a full refund of your initial investment.

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