### Question
How is the term municipal bond defined?


### Answer
The term **municipal bond** is defined in *26 U.S.C. § 75* as the following:

> any obligation issued by a government or political subdivision thereof if the interest on such obligation is excludable from gross income

#### Citation:
  - *26 U.S.C. § 75*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART II-ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME**

