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Finance Dictionary and Glossary of Investment Terms
Municipal Bond - Short Term (Single-state and national)
A Morningstar category for tax-free bond funds that invest in nationwide or single-state short-term municipal bonds whose interest is paid by taxes or project revenues. These bonds have an average duration of less than 3.5 years or an average effective maturity less than 4 years. To be classified as a bond fund by Morningstar, at least 70% of all assets must be invested in bonds.