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Enhanced Aa1 rating with Idaho's school bond guaranty--so the bond is backed by the state to a large extent. 10% of the interest payment is subsidized by the state, reducing the direct costs to our county. Based on past bonds, our district will work to pay this off in less than 20 years if at all possible.

The bond interest is exempt from state taxes as well as federal. I suspect we'll be in about the 22% bracket this year (federal); Idaho taxes are about 7%. Our other investments are considerably more aggressive--stock funds and real estate.

I'm not thrilled about bonds, but my husband is wanting at least a few investments that are more conservative. He goes along with my buying tax deeds; I have to concede on a few things. We are aware that liquidity is a consideration, but have other funds to cover this. And I rationalize that the bonds are investing directly in our community, which really is kind of cool.

Really appreciate the comments thus far. Please feel free to offer more. Also, do bonds ever pay back principal along with the interest rather than the lump sum at the end of the term? A couple of things I've read on other Idaho school bond sites make is sound as though they do.

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