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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 municipal bond yields.


Where to find information on municipal bond interest rates?

The municipal bond interest rates are the coupon rates which are shown in any financial listings of municipal bonds.

How do municipal bond interest rates work?

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 municipality.


How do municipal bond interests accrue?

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.