What are municipal bonds?
An example of an AI chatbot conversation about municipal bonds and their benefits.
What are municipal bonds?
Municipal bonds are debt securities issued by states, municipalities, or counties to finance public projects.
How do they work?
When you buy a municipal bond, you're lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value at maturity.
What are the benefits of investing in them?
The main benefits include tax-exempt interest income, lower risk compared to corporate bonds, and supporting community projects.
Are there any risks involved?
Yes, risks include credit risk, interest rate risk, and the potential for the issuer to default.
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