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Bond Values and Yields Issued by City

Describe or define and discuss a bond issued by a city that is having a little bit of a problem with creditworthiness (but not "junk" level yet) and how it is differentiated from other bonds. Then explain how valuing bonds is done and how interest rates affect their value. Consider the importance of the yield-to-maturity (YTM) in your discussion response.

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These bonds interest me because they (their interest and if you sell them or they mature), often do not become taxed at the state level from which they are bought. Also the income one gets from interest is usually federally tax free as well. Also, a lot of these having been paying higher yields now (especially compared to CDS and other ways of acquiring income), and some, even without their tax advantages pay a higher interest rate than their corporate counter-parts, and unlike federally issued bonds, their interest are usually not taxed in the state at the state level where they are from. Also, these are generally a lesser ...

Solution Summary

I describe, define and discuss a bond issued by a city that is having a little bit of a problem with creditworthiness (but not "junk" level yet) and how it is differentiated from other bonds. Then I explained how valuing bonds is done and how interest rates affect their value. Consideration to the importance of the yield-to-maturity (YTM) is provided in my discussion response.

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