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Municipal bonds are one method that state and local governments raise money for public-service projects.

This type of bond can provide an attractive tax exemption for investors. But anyone interested in municipal-bond investing should also understand the risks that can accompany “munis.”

If you would like to learn more about municipal bonds, here are a few useful sites:

U.S. Securities and Exchange Commission: Offers municipal-bonds basics and background. sec.gov/answers/bondmun.htm

Investopedia.com: Covers municipal-bond basics, risk factors and buying strategies. investopedia.com/articles/bonds/05/022805.asp

AARP: Answers nine questions about municipal bonds. aarp.org/money/budgeting-saving/info-04-2012/investing-in-municipal-bonds.html

E-Muni: Provides a useful glossary of municipal-bond terms. emuni.com/glossary.html

InvestingInBonds.com: Select the “About Municipal Bonds” link on this website, which is run by an industry trade group, to find information about buying and selling munis. investinginbonds.com/learnmore.asp