what are the benefits of a municipal bond 
although municipal bonds may have lower interest rates than riskier investments like corporate bonds or stocks they offer stability for your capital with low default rates interest from munis is also generally exempt from federal taxes making it an attractive investment the bottom linemunicipal bonds are debt instruments issued by local governments to finance the needs of a community such as the building of a community center or park they offer investors a low risk investment of fixed income and can be a good option to diversify a bond portfolio 