Municipal bond
Municipal bond is a bond that is issued by state and local governments. The interest earned on most municipal bonds is exempt from federal taxes and also from state taxes if the holder is a resident of the issuing state.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Municipal bond. Issued by state and local governments. The interest earned on most municipal bonds is exempt from federal taxes and also from state taxes if the holder is a resident of the issuing state.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Municipal bonds. Bonds issued by state and local governments.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
