EXPLANATION: Gross margin is the difference between revenue and cost of goods sold divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold. Gross Margin is often used interchangeably with Gross Profit, but the terms are different.
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.
<u>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.</u>
