Municipal bonds can be attractive investments,despite their lower interest rate,since their interest income is exempt from federal income tax.

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Municipal bonds, also known as "munis," offer tax advantages because their interest income is exempt from federal income tax. This makes them an attractive investment option for individuals in higher tax brackets. Even though their interest rates may be lower than other types of bonds, the tax savings can make up for the difference.

Municipal Bonds Can Be Attractive Investments,despite Their Lower Interest Rate,since