Respuesta :
City will likely use these funds to to pay for road improvements.
What are Municipal Bonds?
Municipal bonds are debt instruments issued by states, cities, counties, and other public bodies to support operating expenses and capital projects such as the construction of schools, roadways, and sewer systems. When you buy municipal bonds, you are effectively lending money to the bond issuer in exchange for the promise of regular interest payments, generally semi-annually, and the return of your initial investment, or "principal." The maturity date of a municipal bond (the day when the bond's issuer repays the principal) might be years in the future. Short-term bonds mature in one to three years, whereas long-term bonds take more than a decade to maturity.
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