Municipal bonds generally are traded and quoted in terms of yield (yield to maturity or yield to call). The price of the bond in this case is called a basis price.

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Municipal bonds are typically traded and priced based on their yields, which can be either yield to maturity (YTM) or yield to call (YTC). The price of the bond is then referred to as a basis price.

Municipal Bonds Generally Are Traded and Quoted in Terms of Yield