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Certain Basics of Municipal Bonds

Interest payments. Interest on long-term, fixed-rate bonds is usually paid semiannually, while interest on variable rate bonds is generally paid monthly. Interest on short-term, fixed-rate notes is paid at maturity.

Minimum denomination investment. Most fixed rate bonds and notes are issued in minimum denominations of $5,000 or multiples of $5,000, while variable rate bonds are generally issued in minimum denominations of $100,000 and in $5,000 increments above $100,000.

Marketability. Owners of New York State Bonds and Notes may sell their bonds or notes through one of the many broker/dealer firms which are registered to buy and sell municipal securities.

Tax-Exempt interest rates. Interest on tax-exempt New York State Bonds is generally lower than taxable corporate bonds, but is usually higher on an after-tax basis.