Buying Municipal Bonds For Dummies File

: The muni market is fragmented; it can be difficult to sell a specific bond quickly without a price penalty. Is it Worth it? The "Tax-Equivalent Yield"

Because munis are tax-free, they usually offer lower interest rates than taxable bonds. To see if they are a better deal, use the formula provided by Dummies : Find your Reciprocal : Calculate : Example: A muni for someone in a tax bracket has a tax-equivalent yield of ). If a taxable bond pays less than , the muni is the better choice. How to Buy buying municipal bonds for dummies

: They are generally considered lower risk than corporate bonds, with historically low default rates. : The muni market is fragmented; it can