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In addition to these Treasury securities, certain federal agencies also issue bonds. The Government National Home Loan Association (Ginnie Mae), the Federal National Home Loan Association (Fannie Mae), and the Federal Home Mortgage Mortgage Corp. (Freddie Mac) problem bonds for specific purposes, mostly related to funding home purchases - why invest in a bond yahoo finance. These bonds are likewise backed by the full faith and credit of the U.S.
Community bonds (" munis") are issued by state and local governments to fund the building of schools, highways, real estate, sewer systems, and other crucial public tasks. These bonds tend to be exempt from federal earnings tax and, sometimes, from state and local taxes for investors who reside in the jurisdiction where the bond is released.
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