Municipal Bond (Noun)
Meaning
A bond issued by a state or local government.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The city issued a municipal bond to finance the construction of a new public library and community center.
- Municipal bonds are often used to fund infrastructure projects such as roads, bridges, and public transportation systems.
- Investors seeking low-risk investments may consider purchasing municipal bonds, which typically offer tax-free interest income.
- The state government sold municipal bonds to raise funds for the development of a new water treatment plant.
- Local governments frequently use municipal bonds to finance capital projects, such as building new schools and renovating existing ones.