Types of Bonds

1. Government Bonds: These bonds are from national governments. Because it is always possible for a government to raise funds either by taxing its citizens or by printing money to service that debt, government bonds happen to be very low in risk. 2. Municipal Bonds: These are issued by local or state government and raised funds for public projects such as schools, highways, and hospitals. In most cases, these bonds offer tax-free interest income for investors, especially in the U.S.