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Annamaria Neal

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The U.S. government issues its own bonds from the treasury and from several government agencies. Those maturing in less than one year are referred to as T-bills. Bonds that develop in one to 10 years are T-notes, and those that take more than 10 years to grow are treasury bonds. In many cases, you do not have to pay state or local income taxes on the interest they earn.

Munis finance things like medical facilities, schools, power plants, streets, workplace structures, airports, bridges and the like. Municipalities typically provide bonds when they require more money than they collect through taxes. The excellent thing about local bonds is that you do not have to pay federal earnings taxes on the interest they earn.

While corporate bonds are a higher danger than federal government bonds, they can make a lot more money. There's likewise a much bigger choice of corporate bonds. The downside is that you do need to pay federal income

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