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Find Yields and Safety With Municipal Bonds.

IN A WORLD of paltry fixed-income yields, municipal bonds look relatively good. Tax-exempt munis are usually a good bet for those in higher income brackets. But the securities have become attractive for all investors in recent months because they've been offering higher absolute yields than comparable-term Treasury securities.

On April 18, for example, five-year Treasury notes were yielding 2.90%, while five-year AAA-rated municipal bonds yielded 2.98%. In other words, the munis were providing 103% of the T-notes' yield, up from a typical 80% to 85%.

When you factor in their tax-exempt status, munis are even more compelling. Interest income on municipal bonds is ...

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