BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Municipal bonds are issued by local and state governments to help fund public projects or municipal government operations, like building new schools or repairing city sewer systems.

Detailed explanation-2: -True interest cost includes all ancillary fees and costs, such as finance charges, possible late fees, discount points, and prepaid interest, along with factors related to the time value of money (TMV). Because TIC is commonly used in municipal bond offerings, it also may mean the “actual cost” of issuing a bond.

Detailed explanation-3: -Municipal bonds (munis) are debt securities issued by state and local governments. These can be thought of as loans that investors make to local governments, and are used to fund public works such as parks, libraries, bridges and roads, and other infrastructure.

Detailed explanation-4: -Income from bonds issued by state, city, and local governments (municipal bonds, or munis) is generally free from federal taxes.* You will, however, have to report this income when filing your taxes. Municipal bond income is also usually free from state tax in the state where the bond was issued.