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Municipal Bonds: The Lower-Risk Investment With A Catch
When investors think about fixed-income investments, corporate bonds and government securities usually get most of the attention. But there is another category that can offer steady income, relatively lower default risk and, in some cases, tax advantages: municipal bonds.
Municipal bonds, often called “munis,” are debt securities issued by state, county and local governments to raise money for public projects such as roads, schools, hospitals and other infrastructure.
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