Municipal bonds are debt administered by a town, state, school district or any other public organization that services the public. The bonds are sold to the public with the intention of paying the debt back with interest at a later date. Bonds can be an attractive investment since they are considered relatively safe. A bond s yield is the amount of the bond that is returned back to the investor. Below are the current top three highest-yielding bonds.
1. CALIFORNIA EARTHQUAKE AUTHORITY REVENUE TAXABLE (13017HAA4)
This bond was created to enhance the California Earthquake Authority's (CEA) claims-paying capacity. Formed in 1996, the CEA offers basic residential earthquake insurance policies in California. The agency holds a 69% market share of the residential earthquake policies in force in California. The bond currently yields 58.048% and has a coupon of 6.169% and a maturity date of July 1, 2016.
2. LOMBARD ILLINOIS PUBLIC FACILITIES CORPORATION FIRST TIER SERIES A-1 (541589AC1)
This bond was established to finance the Lombard Public Facilities Corporation's conference center and hotel located in Illinois. The entire project will include the construction of an 18-story building containing approximately 470,000 gross square feet. The hotel will feature approximately 500 guest rooms and suites, a Harry Caray's Restaurant, and a 8,000 square foot banquet space. The bond currently yields 55.917% and features a 6.375% coupon. The bond matures on January 1, 2015.
3. OREGON ST ST BOARD HIGHER EDUCATION SERIES A (68607LVT1)
This bond will finance a variety of construction, reconstruction and improvement projects spread among a number of institutions, which are part of the Oregon University System. The projects intended to be financed with the proceeds of these bonds include the Regional Agricultural, Health and Life Science Building, a Library addition at Southern Oregon University, the College of Veterinary Medicine's new building, and an addition to the Museum of Art at the University of Oregon. The bond currently yields 55.104%, features a 4.250% coupon, and matures on August 1, 2026.