Question

"Municipal bonds, or "munis," are bonds issued by states, counties, and cities, in addition to other public agencies such as school districts and highway authorities, to fund public projects. There are thousands of different issues of municipal bonds, with just under $4 trillion in outstanding value"
1. True
2. False

Answer 1

Answer:

1. True

Explanation:

• The municipal bonds are called as Munis bonds and are issued by the local government or territory and are used to finance the public projects and include the schools, airports and seaports, and infrastructure-related repair and as of 2011, the values of these bonds is valued at 3.7 trillion dollars.

• In general, they are used for the issuing of the municipality related services and they are characterized by taxability, interest rates, liquidity, and security.

• The primary reason why theses type of bonds are special to their tax exemptions and are subjected to an alternative minimum amount of tax as an item of preferences.