| Net Debt To Assessed Valuation | |
 In a municipal bond issue, a ratio measuring the value of the municipality's net debt compared to the specified value of the real property being purchased as assessed for tax purposes. |
|
 This is one of the factors which determines the quality of a municipal bond issue. The lower a municipality's debt is relative to the assessed value of its property, the less risky its bonds are deemed to be, since there is less risk of the government being unable to finance repayment of the bond issue. |
|
 The Basics of Municipal Bonds - These notes may offer a tax-free income stream but they are not without risks. Weighing the Tax Benefits of Municipal Securities - Find out how to determine whether the tax exemption offered by "munis" benefits you. |
|
Related Terms
 |