Public-purpose bond

Definition

A specific type of municipal bond used to finance public projects such as roads or government buildings. Interest on municipal bonds is federal income tax-free.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University


Term of the Day

Covenant
An agreed action to be undertaken (Positive) or not done (Negative). A breach of a covenant is a default.

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