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NASD Smart Bond Investing Glossary |
 | | A bond market benchmark is an index such as the Lehman Brothers Aggregate Bond Index, whose change in value is viewed as an indicator of the direction of the bond market or a bond market sector and, as such, against which you may measure the performance of your bonds or bond funds. |
 | | A legal document between a bond issuer and a trustee appointed on behalf of all bondholders that describes all of the features of the bond, the rights of bondholders, and the duties of the issuer and the trustee. |
 | | These bonds are typically exempt from federal taxation and, for investors who reside in the state where the bond is issued, from state and local taxes too. |
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