Municipal bonds are called munis, and they are the progression regarding risk. Cities don't bankrupt often, but that might happen. The yield on this bond is basically lower than other taxable bonds.
Pros & Cons of Municipal Bonds.
Municipal Bond Tax Exemptions
The biggest advantage associated with investing in the municipal bonds is that they are normally tax free and there is no tax deduction on this bond.
Advantage: Low Risk Bonds
The other advantage of investing in this type of bond is that it is comparatively lower risky. Because the debt of the Governments are backed by securities or ...