Chapter 7: Municipal Debt

Chapter summary

Chapter 7 covers municipal securities: GO bonds backed by the taxing power of the issuer, revenue bonds backed by project receipts, and short-term notes (BANs, RANs, TANs). Federal income tax exemption is the defining feature of munis. Use the Tax-Equivalent Yield formula to compare munis to taxable bonds. MSRB regulates dealers; know the official statement as the disclosure document. Private activity bonds may be subject to the AMT.

Key concepts

• Types of Municipal Bonds
• Other Municipal Securities
• Municipal Fund Securities
• Tax Considerations
• Quotations
• Types of Municipal Bonds
• Other Municipal Securities
• Municipal Fund Securities
• Tax Considerations
• Quotations
• Distinguish between general obligation (GO) bonds (backed by taxing p...
• Identify which type carries more credit risk and why (revenue bonds d...

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