Municipal bonds are usually purchased by:

Question

Quizplus · Accepted Answer

Municipal bonds are typically purchased by investors who are in high marginal tax brackets, as these bonds offer tax advantages, such as exemption from federal income tax and potentially from state and local taxes as well. This makes them an attractive investment option for high income earners who are looking for tax-advantaged investment options. Retired investors who have no other taxable income may also be interested in municipal bonds, but this is not always the case. Investors looking for securities to buy for their IRA accounts and investors who live in cities with high municipal tax rates may not necessarily be interested in municipal bonds as these factors do not directly impact the benefits of investing in municipal bonds.

Municipal Bonds Are Usually Purchased By