Abstract
Municipal bonds are used as a source of funding for local economic development and are debt securities that are issued by the city government. In recent years, interest in this type of bond in Serbia is growing, due to the low-risk investments, the realization of liquidity investors of revenue for these bonds usually are not subject to taxation, and a yield that is achieved on these bonds is generally higher than the state yield, which is achieved by investing in state bonds. Broadcast municipal bonds of the municipality is cheaper than conventional loans from banks, which is the reason of attracting a large number of investors in order to implement concrete projects.
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