There are certain risks associated with investing in municipal bonds, and such debt securities may not be suitable for every investor. Investors should determine whether investing in such instruments is consistent with their financial circumstances, investment objectives, risk tolerance, tax status, and liquidity needs. The yield offered by a municipal bond generally increases with the risk of the bond and the time to maturity. Municipal bonds are typically illiquid; therefore, it may be difficult to sell them prior to maturity. Municipal bonds are subject to interest rate risk, and a full return of principal investment is not guaranteed.
Investors should review an issuer's offering documents, including the risk disclosures, before purchasing a bond. Some official statements and other issuer documents are available and free to the public through the Municipal Securities Rulemaking Board's online Electronic Municipal Market Access ("EMMA") system.
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