From NerdWallet.com….
As you drive down a smooth highway or past that new, state-of-the-art stadium, you might wonder how your city paid for it. It’s very likely a municipal bond made it happen.
Municipal bonds, also known as munis, are debt securities issued by state and local governments to bankroll necessary infrastructure. They’re often used to build hospitals and roads, to improve schools or to kick off public works projects.
Muni bonds also are popular among investors. They can generate regular income and typically are exempt from federal taxes, as well as most state and local taxes, making them particularly attractive to those in higher tax brackets.
