Maine Municipal Bond Bank 2011 Series E Bonds and 2011 Series F Refunding Bonds-2025

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Municipal Bonds NameYield1 Day BVMB1Y:IND Muni Bonds 1 Year Yield 2.58% +1 BVMB2Y:IND Muni Bonds 2 Year Yield 2.65% +1 BVMB5Y:IND Muni Bonds 5 Year Yield 2.82% +2 BVMB10Y:IND Muni Bonds 10 Year Yield 3.11% +31 more row
Example of refunded bond Consider the case where a municipality issued bonds with a higher interest rate years ago. Since then, interest rates have dropped, so the municipality took advantage of the rosy market circumstances. They issue new bonds at the current reduced interest rate to repay the initial bond issue.
Description of Bank Qualified Bonds Banks, like other investors, purchase municipal bonds in order to obtain the benefit of earning interest that is exempt from Federal income taxation. Historically, commercial banks were the major purchasers of tax-exempt bonds.
Generally unique to municipal securities, a refunding is the process by which an issuer refinances outstanding bonds by issuing new bonds. This may serve either to reduce the issuers interest costs or to remove a restrictive covenant imposed by the terms of the bonds being refinanced.
Bond refunding is the process by which an organization retires existing bonds by issuing new bonds at a lower interest rate to reduce interest costs or extend the maturity of its debt.
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Answer and Explanation: Calling a bond means the bond can be called in advance than the maturity of the bond and it will be redeemed by the issuer. Bond refunding means retiring the bond at its maturity by using a new debt issue.
There are risks and costs associated with selling a municipal bond prior to maturity. Investors should understand these risks and costs when considering the purchase and sale of municipal bonds. This document provides an overview of these key considerations.

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