Long-Term Municipal Bond

Long-term municipal bonds are debt securities, issued by state and local governments,... Long-term municipal bonds are debt securities, issued by state and local governments, which typically have a duration of greater than 6 years. With duration indicating a bond's likely price change due to a change in interest rates, longer duration bonds are more sensitive to changes in interest rates than shorter duration bonds. This can make them risker for investors worried that interest rates could rise, leading to a fall in bond price. Typically, the states of New York and California issue long-term municipal bonds with a mandate that at least 80% of their assets should be in debt issued by either the state or local governments. Like other municipal bonds, the interest payments from these securities are typically exempt from federal taxation. Interest payments can be also tax-free at the state level if investors are residents of the state issuing the bonds. Last Updated: 06/15/2026 View more View less

Long-term municipal bonds are debt securities, issued by state and local governments, which typically have a duration of greater than 6 years. With duration indicating a bond's likely price change due to a... Long-term municipal bonds are debt securities, issued by state and local governments, which typically have a duration of greater than 6 years. With duration indicating a bond's likely price change due to a change in interest rates, longer duration bonds are more sensitive to changes in interest rates than shorter duration bonds. This can make them risker for investors worried that interest rates could rise, leading to a fall in bond price. Typically, the states of New York and California issue long-term municipal bonds with a mandate that at least 80% of their assets should be in debt issued by either the state or local governments. Like other municipal bonds, the interest payments from these securities are typically exempt from federal taxation. Interest payments can be also tax-free at the state level if investors are residents of the state issuing the bonds. Last Updated: 06/15/2026 View more View less