What Is A Municipal Bond?



Next video:
Loading the player...

Municipal bonds, often called munis, are considered a debt instrument because when the investor purchases one, he or she is essentially loaning funds to the authority that issued it. In exchange, the authority promises to pay interest, called the coupon rate, during the years prior to maturity, at which point it repays the bond’s par value.

You May Also Like

Related Articles
  1. Bonds & Fixed Income

    The Basics Of Bond Duration

  2. Bonds & Fixed Income

    Bond Yields: Current Yield And YTM

  3. Bonds & Fixed Income

    Junk Bond

  4. Investing

    Callable Bond

  5. Retirement

    Top Uses For Bonds

  6. Investing

    Introduction To Bonds

  7. Mutual Funds & ETFs

    Pros & Cons Of Bond Funds Vs. Bond ETFs

Trading Center