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June 27, 2008, Newsletter Issue #124: Municipal Bonds

1

Tip of the Week

Include municipal bonds in your bond investing strategy to earn interest that is exempt from federal taxes. Municipal bonds are bonds offered by state or local governments to allow them to borrow money and avoid raising taxes. Because a state or local government has a chance of going bankrupt, the interest rates offered by these bonds are higher than with federal bonds. State or local issued bonds are also called Municipal bonds.



2

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