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Types of Bonds

Are Zero Coupon Municipal Bonds for You?

Now that you are acquainted with some of the principal characteristics of zero coupon municipal bonds, you should review your investment portfolio to determine whether it provides the degree of safety and long-term growth potential offered by zero coupon municipal bonds.

Your financial advisor can answer your questions about specific zero coupon municipal bonds and help you define your investment objectives. These professionals can provide you with information about current offerings in both the new issue and secondary markets and can assist you in selecting the bonds most suited to your needs.

The Tax-Exempt/Taxable Yield Equivalents table will help you determine the amount of income you require from a taxable investment to equal the yield on a tax-exempt bond. The table is for illustrative purposes only and is not intended to be representative of any specific security.

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All information and opinions contained in this publication were produced by the Securities Industry and Financial Markets Association from our membership and other sources believed by the Association to be accurate and reliable. By providing this general information, the Securities Industry and Financial Markets Association makes neither a recommendation as to the appropriateness of investing in fixed-income securities nor is it providing any specific investment advice for any particular investor. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and sources may be required to make informed investment decisions.