You have probably heard that you can invest in municipal bonds, where the interest earned on them is tax-free. municipalities need funds to support the purchase of their capital assets, they issue tax-free bonds as an incentive for taxpayers to invest in them. This is a win-win for all parties concerned. For this unit, do the following: Explain a bond issue that your local government has issued to purchase a specific capital asset Describe how a sinking fund can be used to pay back the principle of the bond issue raid about the differences between term bonds a