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Shane Stlouis

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The U.S. federal government releases its own bonds from the treasury and from numerous federal government companies. Those maturing 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 develop are treasury bonds. In many cases, you don't need to pay state or local income taxes on the interest they earn.

Munis finance things like health centers, schools, power plants, streets, office complex, airports, bridges and so on. Towns usually provide bonds when they require more money than they collect through taxes. The advantage about local bonds is that you do not have to pay federal income taxes on the interest they earn.

While corporate bonds are a higher risk than government bonds, they can make a lot more cash. There's also a much larger selection of business bonds. The downside is that you do need to pay federal income tax on the interest they

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