Municipal bonds are usually purchased by:

Question

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Municipal bonds are tax-exempt at the federal level and often at the state and local levels, making them attractive to investors in high marginal tax brackets. This is because the tax-exempt status of municipal bonds effectively increases their yield compared to taxable bonds. Retired investors with no taxable income may not benefit from this tax exemption, investors looking for securities for their IRA accounts may not prioritize municipal bonds, and investors who live in cities with high municipal tax rates may choose to diversify their portfolio with bonds from other municipalities.

Municipal Bonds Are Usually Purchased By