{"id":4194,"date":"2023-03-17T02:36:36","date_gmt":"2023-03-17T02:36:36","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/municipal-bonds\/"},"modified":"2023-03-17T02:36:36","modified_gmt":"2023-03-17T02:36:36","slug":"municipal-bonds","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/municipal-bonds\/","title":{"rendered":"Municipal Bonds"},"content":{"rendered":"<p>\nMunicipal bonds or \u2018Muni bonds\u2019 are debt instruments issued by municipal corporations or similar local bodies for raising funds.The Muni bonds have a fixed maturity period and a fixed interest rate. The tenure or maturity may differ and these bonds come generally for three years but there are long-term municipal bonds for ten years as well. The municipal corporations earn income by levying property tax\/house tax or other such taxes and pay interest from this income on these bonds.<\/p>\n<h2>Reasons for issuance of Municipal Bonds<\/h2>\n<p>Municipal bonds are issued by various local bodies for raising funds for specific projects of importance, like- building roads, hospitals, schools, parks, sanitation projects etc.<\/p>\n<h2>Benefits of Municipal Bonds<\/h2>\n<p>a) The risk of default is relatively low as the Municipal bodies are considered to be semi or quasi government entities.<br \/>\nb) There is a high level of transparency in these bonds and investors can easily access information related to Muni bonds.<\/p>\n<h2>Limitations of Municipal Bonds<\/h2>\n<p>Limitations of Municipal Bonds are:<br \/>\n1. The returns generated may not be very attractive for investors.<br \/>\n2. The tenure of these bonds is reasonably high.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Municipal bonds or \u2018Muni bonds\u2019 are debt instruments issued by municipal corporations or similar local bodies for raising funds.The Muni bonds have a fixed maturity period and a fixed interest rate. The tenure or maturity may differ and these bonds come generally for three years but there are long-term municipal bonds for ten years as [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-4194","post","type-post","status-publish","format-standard","hentry","category-etfs"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4194"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4194\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}