Municipal bonds, also known as “munis”, are debt securities issued by states, cities, counties, and other government entities to raise funds for public infrastructure projects, such as schools, hospitals, and roads. Essentially, the bond issuer borrows money from investors who purchase the bond and receive a pre-agreed interest rate over the life of the bond. The bond issuer then pays back the principal and any accrued interest upon maturity. Municipal bonds are typically seen as low-risk investments with attractive tax advantages. They offer an investor peace of mind knowing that their money is being used to help fund worthy public initiatives. Plus, if held until maturity, municipal bonds have historically offered above average returns compared to other investment options.