Municipal bonds offer fantastic yields, especially in these four high-tax states

If you are an investor, assumptions built up during decades of low bond yields now have to go out the window. Interest rates are now high enough that you can get compelling returns on municipal bonds, if you take tax advantages into account.

This assumes of course that you are paying high-enough income taxes that avoiding them is worthwhile. Early in October we looked at exchange-traded funds that invest in municipal bonds paying interest that is exempt from federal income taxes. We also dug into two high-tax states, because…