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During the last 20 years, the average interest rate for an AA-rated general obligation bond with a 20-year term has been 4.37%.
FS Form 4000. Request To Reissue United States Savings Bonds. Use to request reissue of paper savings bonds, except for reissue to a personal trust. Sign this form in the presence of a certifying individual.
The State of Minnesota sells General Obligation Tax Exempt and Taxable Bonds, and Revenue Bonds. The proceeds from the sale of General Obligation bonds are used to pay the cost of building the capital projects that are approved by the Legislature.
Get a certified copy of the death certificate for everyone who has died who is named on any of the bonds. Have each person who is entitled to a distributed bond also fill out and sign the appropriate forms: If they want cash for their bond: FS Form 1522. If it is an EE or I bond and they want to keep it: FS Form 4000.
Income from bonds issued by state, city, and local governments (municipal bonds, or munis) is generally free from federal taxes. * You will, however, have to report this income when filing your taxes. Municipal bond income is also usually free from state tax in the state where the bond was issued.
Although general obligation bonds are backed by the full faith and credit of the issuer, there is still a risk that the issuer may default on its obligation to pay interest and principal.
A general obligation, or GO, bond is a type of municipal bond that is backed entirely by the issuers creditworthiness and ability to levy taxes on its residents. Unlike revenue bonds, GO bonds are not backed by collateral and do not pay creditors back on the basis of income generated from funded projectes.
You do not pay federal income tax on state or local government bond interest. You must report this interest on your federal return for informational purposes, but it is not included in your taxable income. You do not pay Minnesota income tax on state or local government bond interest from bonds within Minnesota.