Municipal bonds allow state and local governments to raise money for public service projects, such as highway and school construction. In addition to helping provide the services we need, many municipal bonds also offer a way to earn money tax-free.
However, municipal bonds are not all alike and have different investment requirements. If you would like to learn more about them, consider visiting one of the following Web sites:
Bond Market Assn. at www.investinginbonds.com/info/igmunis/what.htm. The association explains how municipal bonds work, yields and tax rules.
Bondsonline at www.bondsonline.com/asp/muni/igtaxfree.asp. The site contains an article that discusses how tax-free municipal bonds work.
E-Muni at www.emuni.com/glossary.html. The Web site has a useful glossary of municipal bond terms without the jargon.
Equity Analytics at www.e-analytics.com/bonds/bond19.htm. Users can learn basic definitions of bond ratings.
Bloomberg.com at bloomberg.com/markets/munibondyield.html. This section of Bloomberg's financial site offers updates on yields for a variety of municipal bonds.