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Lesson 75: Municipal Bonds and Public Sector Finance
Lesson 75: Municipal Bonds and Public Sector Finance
ποΈ What Are Municipal Bonds?
ποΈ What Are Municipal Bonds?
Municipal bonds (also called "munis") are debt securities issued by government entities, like:
Cities ποΈ
States π
School districts π«
Transportation authorities π
They are used to raise money for public projects like building schools, roads, hospitals, and water systems.
π§ In simple terms: the government borrows money from investors and promises to pay it back with interest.
π° Key Features of Municipal Bonds
π° Key Features of Municipal Bonds
𧩠Types of Municipal Bonds
𧩠Types of Municipal Bonds
π Accounting for Municipal Bonds (Public Sector)Β
π§Ύ Note: Government entities follow GASB standards (Governmental Accounting Standards Board).
π Why Do Governments Use Bonds?
π Why Do Governments Use Bonds?
Fund large infrastructure projects without raising taxes immediately
Spread costs over time β³
Support community development ποΈ
π§ Risks and Considerations
π§ Risks and Considerations
β
Summary
β
Summary
Municipal bonds are essential tools for financing public projects
They are popular because of their tax advantages and social impact
Accounting involves tracking debt issuance, interest payments, and fund usage under GASB standards
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