Iowa bonds (Iowa Municipal Bonds) are issued by state, territory, municipality or political subdivision. Being tax-free Iowa municipal bonds are quite popular with investors. Before the 1970s, the municipal bonds market was mainly dominated by financial institutions, such as banks and insurance companies. Currently, small investors hold the major share of municipal bonds.
Iowa Bonds: Popular
The following are the popular Iowa municipal bonds:
- State University Iowa University Revenue Athletic Facilities Series S U I; Coupon/Interest Rate: 4.250% and Maturity Date: 2031-07-01
- Davis County Iowa Hospital Revenue Davis County Hospital Project; Coupon/Interest Rate: 5.500% and Maturity Date: 2018-09-01
- West Des Moines Iowa Series B; Coupon/Interest Rate: 4.000% and Maturity Date: 2011-06-01
- Iowa Finance Authority Revenue Iowa St Revolving Fund; Coupon/Interest Rate: 4.625% and Maturity Date: 2021-08-01
- Spirit Lake Iowa Urban Renewal Series A; Coupon/Interest Rate: 3.300% and Maturity Date: 2019-06-01
- Waterloo Iowa Series A; Coupon/Interest Rate: 3.800% and Maturity Date: 2013-06-01
Iowa Bonds: Things to Consider
It is crucial to obtain the following details in writing from the broker before investing in Iowa municipal bonds. Start by asking for a detailed account of the securities as to whether these are general obligation (GO) bonds or does the debt service depend on income or taxes that the underlying entity generates. Also try and get a thorough explanation of the planned implementation of the bond proceeds. This includes how much of the proceeds’ share will go to financial consultants and lawyers.