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3. Series I bonds and EE bonds. While not as tax-friendly as municipal bonds, Series I bonds and EE bonds offer some attractive tax advantages. The interest earned is typically free from state and ...
Municipal bonds offer investors the benefit of a tax-free yield on their investment, a benefit that can provide a significant advantage over traditional income investments.
The Fidelity Tax-Free Bond Fund aims to provide a high current yield that is exempt from federal income tax. ... higher federal tax-free income than other muni bond funds that invest in investment ...
A municipal bond, commonly known as a muni, is a bond issued by state or local governments, or entities they create such as authorities and special districts. In the United States, interest income received by holders of municipal bonds is often, but not always, exempt from federal and state income taxation.
Build America Bonds are taxable municipal bonds that carry special tax credits and federal subsidies for either the bond issuer or the bondholder. Build America Bonds were created under Section 1531 of Title I of Division B of the American Recovery and Reinvestment Act that U.S. President Barack Obama signed into law on February 17, 2009.
Positive, tax-free carry can reach into the double digits. The bet in municipal bond arbitrage is that, over a longer period of time, two similar instruments--municipal bonds and interest rate swaps--will correlate with each other; they are both very high quality credits, have the same maturity and are denominated in U.S. dollars.
The easiest — and indeed, one of the only — ways to generate tax-free income from your investments is to buy municipal bonds. Generally, municipal bonds are tax-free at the federal level.
The interest income is exempt from federal income tax for the recipient—a treatment similar to that for interest income from municipal bonds. Tax anticipation notes are short term notes, issued at a discount, with a maturity period usually less than a year or a stated future date.