If you are thinking about investing in municipal bonds, you likely have two main investment objectives: Capital preservation and income generation.
Capital preservation means you do not want to lose any money. If you invest a dollar, you want your dollar back at the very least. Income generation means that you want to receive some ongoing interest income on a predictable basis (this is why bonds are also known as "fixed income" securities.) From your bond investments, your goal is to protect your assets as much as possible. You may have a stock portfolio, maybe you even own cattle futures, but your aim with your bond portfolio is to protect your investment principal and sleep well.
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