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Municipal Bond
A bond issued by local or state governments to finance public projects, often offering tax-exempt interest payments.
Taxable Equivalent Yield
Taxable equivalent yield calculates the yield a taxable bond needs to match the after-tax yield of a tax-exempt bond, considering the investor's tax rate.
Tax Bracket
A range of incomes taxed at a particular rate, with progressive tax systems applying higher rates to higher income levels.
Treasury Bonds
Long-term government securities issued by the U.S. Department of the Treasury, with a maturity period typically extending beyond ten years, offering periodic interest payments and repaying the principal at maturity.
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