Knowledge Tree
Relations (1)
related 2.00 — strongly supporting 2 facts
Municipal bonds are a specific sub-category of bonds, as evidenced by their classification alongside other bond types in [1] and their inclusion as a direct investment option within the broader asset class of bonds in [2]. Furthermore, [3] discusses the specific tax treatment of municipal bonds as a subset of the general challenges associated with bond investing.
Facts (2)
Sources
Understanding the Relationship Between Risk and Return for ... dunbrook.ca 1 fact
claimBonds, including Government of Canada bonds, provincial and municipal bonds, corporate bonds, and bond ETFs or mutual funds, are classified as having a low to moderate risk level and low to medium return potential.
Investment Options to Generate Income in Retirement | U.S. Bank usbank.com 1 fact
claimThe challenges of investing in bonds include taxation of bond income at ordinary income rates (excluding tax-free municipal bonds), the risk of principal loss if interest rates rise and the investor sells the bond, difficulties in replacing maturing bonds with comparable income, and a lack of inflation protection due to consistent income streams.