What are municipal bonds and how are they used? Q.What are municipal bonds and how are they used? A.Municipal bonds (a term that encompasses both state and local government debt) are obligations that entitle owners to interest plus repayment of principal at a specified date. States and localities (cities, townships, counties, school districts, and special districts) issue bonds to pay for large, expensive, and long-lived capital projects, such as roads and schools. Read more about What are municipal bonds and how are they used?
