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These bonds vary in risk levels and are exempt from federal taxes. Municipal bonds, also referred to as "munis," are debt instruments issued by government entities to finance their operations and capital projects, such as schools and highways. They are a popular investment option due to their tax-exempt status and varying risk levels. These bonds are an important source of funding for local governments and offer investors a way to support their communities while potentially earning a profit. As with any investment, it is important to carefully consider the risks and potential returns associated with municipal bonds before making a decision. So, understanding the basics of municipal bonds is crucial for any investor looking to diversify their portfolio.
