Why are interest rates on U.S. Treasury bonds usually higher than on municipal bonds? and A young woman sells war bonds and stamps and distributes War Production Drive literature., ca. 1943

Why are interest rates on U.S. Treasury bonds usually higher than on municipal bonds?

considering when U.S. Treasury bonds are default-free and municipal bonds have some default risk


Bond best answer:

Answer by xeerdchess
Unlike T-bonds, municiapl bonds are usually tax-emxempt

Bond

A young woman sells war bonds and stamps and distributes War Production Drive literature., ca. 1943


Image by The U.S. National Archives
Original Caption: A young woman sells war bonds and stamps and distributes War Production Drive literature., ca. 1943

U.S. National Archives' Local Identifier:

From:Series: Franklin D. Roosevelt Library Public Domain Photographs, compiled 1882 - 1962

Created By:Roosevelt, Franklin D. (Franklin Delano), 1882-1945

Production Date:ca. 1943

Persistent URL: arcweb.archives.gov/arc/action/ExternalIdSearch?id=196483

Repository: Franklin D. Roosevelt Library, Hyde Park, NY



Access Restrictions: Unrestricted
Use Restrictions: Unrestricted

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Orignal From: Why are interest rates on U.S. Treasury bonds usually higher than on municipal bonds? and A young woman sells war bonds and stamps and distributes War Production Drive literature., ca. 1943