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Author: opentolearn Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35351  
Subject: Municipal Bond Date: 10/22/2002 12:46 AM
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I just received an E mail from Schwab offering the following:

You may have read in the press about the upcoming Power Supply Revenue Bond issue from the State of California Department of Water Resources ("DWR"). Anticipated to be the largest municipal bond issue ever, proceeds will be used to repay expenses incurred during California's recent energy shortage.

The interest income from the 2002A Series will be exempt from Federal and California State income tax.* The issue is expected to carry an investment grade rating of A3 by Moody's and BBB+ by Standard and Poor's (select maturities may be insured and rated AAA/AAA), and offer a variety of maturities and yields.

The bonds are expected to be available during a special retail offering period beginning November 1 through November 5, 2002.

Would that be a good investment. Pros/Cons? I live in California so the exemption from taxes is good. What questions do I need to ask? Thanks.
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