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Another type of investment is municipal bonds. Municipal bonds are local government bonds, which have returns that are free from federal tax. Corporate bonds have higher yields because the risk is greater with a company than with a government bond. The company's credit is a major issue when looking at corporate bonds. Corporate bonds are another type of investment in the bond market. The last type in the zero-coupon bonds. Zero-Coupon bonds have no coupon (interest rate) payments but are issued at a considerable discount to par value. Par value is the principal or face value of the bond once the bond matures...
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