Municipal notes are typically issued in advance of tax payments, earnings, or bond sale revenues.
All new debt issues only come in the book entry form.
<h3>What is meant by municipal notes?</h3>
Municipal notes are typically issued in advance of tax payments, earnings, or bond sale revenues. Compared to municipal bonds, municipal notes are less vulnerable to changes in interest rates.
Municipal securities, sometimes known as "munis," are bonds issued by states, cities, counties, and other municipal organizations to obtain funds for the construction of public infrastructure such as roads and schools.
Municipal bonds, often known as "munis," are debt securities issued by states, cities, counties, and other local bodies to pay for ongoing expenses as well as to fund capital projects like constructing schools, roads, or sewer networks.
Municipal bonds provide stability for your capital with low default rates, even though they may have lower interest rates than riskier investments like corporate bonds or stocks. Additionally, interest on munis is not subject to federal taxes, which makes it a desirable investment.
Therefore, the correct answer is option b) book entry
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