What is bond issued by the government tax free interest?

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2026-09-07 12:20

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A bond issued by the government that provides tax-free interest is typically referred to as a municipal bond. These bonds are often issued by state or local governments to fund public projects, and the interest earned is usually exempt from federal income tax, and sometimes state and local taxes as well. This tax advantage makes municipal bonds an attractive investment option for individuals in higher tax brackets seeking to minimize their tax liabilities.

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