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Retirement accounts are tax deferred. Taxable bonds usually pay higher rates than tax free bonds. It makes sense to buy taxable bonds in retirement accounts.
In the US, even state and native governments may sell includes. Unlike federal bonds, these bonds have a higher rate of interest and the primary reason for this may be the these governments can go bankrupt. However, a federal government cannot go under. Bonds sold by state and local governments are free of charge from income tax.
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