The U.S. federal government issues its own bonds from the treasury and from numerous federal government companies. Those developing in less than one year are referred to as T-bills. Bonds that mature in one to 10 years are T-notes, and those that take more than ten years to mature are treasury bonds. In some cases, you do not have to pay state or local income taxes on the interest they make.

Munis financing things like medical facilities, schools, power plants, streets, office structures, airports, bridges and so on. Towns usually release bonds when they require more cash than they collect through taxes. The great thing about community bonds is that you don't have to pay federal earnings taxes on the interest they make.

While corporate bonds are a greater threat than federal government bonds, they can earn a lot more cash. There's likewise a much bigger selection of corporate bonds. The downside is that you do need to pay federal

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