Why municipal bonds?

Section 1 describes the background and history of municipal bonds in the United States, and how and why a municipality determines what project will be financed. Section 2 explores how a municipality finances its infrastructure and explains how a municipality is seeking a "loan" from investors when it issues a bond for its infrastructure needs; it also explains how the concept of security relates to the concept of credit and describes the two primary types of security pledge. Section 3 describes how and from whom a municipality can finance its infrastructure, defines capital markets, and discusses how much the borrowing costs the issuer.