Municipal Inflation-Linked Securities(redirected from Municipal Inflation-Linked Security)
Municipal Inflation-Linked Securities
Municipal bonds that pay coupons indexed to the Consumer Price Index. The coupon rate varies according to changes in the underlying inflation. The coupon rate is usually lower than those for other municipal bonds, as they have lower risk. Like other municipal bonds, they are exempt from most taxes. For these reasons, municipal inflation-linked securities often provide a solid return at little risk.