| Tax exemption is an important feature of these | | | | obligation bonds, while the people that like earning |
| bonds; perhaps that is why they are also called | | | | high and that want to invest their money for |
| the tax free bonds or the government bonds. | | | | longer period of time prefer investing into the |
| Municipal bonds or the high yield tax free bonds | | | | revenue bonds. The main difference between |
| are not quite old in the bonds market. They were | | | | both of these types of the high yield tax free |
| first launched and floated in the market around 50 | | | | bonds is the way money earned from them is |
| years ago. The reason of floating the high yield | | | | used and the time period for which they are |
| tax free bonds in the market was to persuade | | | | issued. |
| with the process of completing public welfare | | | | The general obligation bonds are floated to gather |
| projects and to provide the common people with | | | | money that can be used in the upkeep and |
| a chance to earn something without facing any | | | | maintenance of the cities and towns. They are |
| risk. However these bonds played a great roll in | | | | usually floated for five years. The interest rate |
| making the lives of the people easy by providing | | | | upon these bonds is paid to the investors as soon |
| them with roads, schools, colleges, and universities. | | | | as it becomes due. On the contrary the money |
| These bonds can generally be divided into two | | | | that is accumulated by selling the revenue bonds |
| types. The first type is known as the general | | | | is invested into the construction of large projects. |
| obligation bonds, while the second type is well | | | | They are utilized to build roads, bridges, dams, and |
| known as the revenue bonds. People that prefer | | | | other projects that are needed by the state or |
| great security go about investing into the general | | | | town. |