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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Municipal Bond

Definition:

A bond issued by a municipality.

That's it.

Cities use them to raise money for parking facilities, water treatment, streets, and so on. Muni bonds are often backed by the assets they are being used to fund. They're a nice little thing to invest in, especially since they're exempt from federal taxes.