Municipal Bond Interest Rates
The municipal bond interest rates are also
called the coupon rates. Municipal bond interest
rates are usually what people look for when buying municipal
bonds. However, bear in mind that the highest municipal bond
interest rates does not mean the best investment or the highest
Where to find information on municipal bond
The municipal bond interest rates are the
coupon rates which are shown in any financial listings of
How do municipal bond interest rates
Municipal bond interest rates are set at the
time of municipal bond
offerings. Municipal bond interest rates are given as a
percentage of par value or face value which is usually $1,000.
The municipal issuer works closely with the municipal bond
underwriters to set the initial offering price of
the municipal bond as well as the municipal bond interest
rate suitable for the market and the financial needs of the
How do municipal bond interests
Interest on a municipal bond accrues daily.
Depending on the type of municipal bond and the issuer,
interest payments of municipal bonds are periodically over the
life of the municipal bonds.
How are municipal bond interests paid?
Interests on municipal bonds are paid
periodically at the municipal bond interest rates set at the
initial municipal bond
offerings. For example, is the rate of the municipal
bond interest is 5% (this is also the coupon rate of the
municipal bond), then the municipal bond pays $50 for every
$1,000 investment annually. When the municipal bond matures,
the investor usually receives his/her principal payment back
plus the last interest payment.