All about municipal bonds?

General
1

i have basic understanding that municipal bodies issue such bonds to raise funds for public service & infra-structure .

they pay coupon rate (generally half yearly) till maturity , & on maturity are supposed to pay the face value.

certain points to verify :-

  1. what are active municipal bonds available right now for purchase ?

  2. does the investor need to be in the municipal jurisdiction , to invest in a certain municipal bond … example ,can a bombay rsident invest in BANGALORE MUNICIPAL BOND or AHMEDABAD MUNICIPAL BOND etc ?

  3. can these be used as collateral for stock trading etc ?

2

The market for Municipal bonds is quite small. Not open for retail investors and these get placed with institutions mostly…and I believe these are not tradable and is to be held to maturity.

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