A triple tax-exempt bond is a type of municipal bond that is exempt from federal, state, and local taxes. This means that the interest earned on these bonds is not subject to income tax, making them an attractive investment for individuals in higher tax brackets. They are typically issued by state or local governments to fund public projects, such as schools or infrastructure. Investors often seek out triple tax-exempt bonds for their tax advantages and relatively low risk. However, these bonds may offer lower interest rates compared to taxable bonds, reflecting their tax benefits. Overall, they can be a valuable addition to a diversified investment portfolio.