What happens when bonds in the fund mature or are called?
A. Proceeds from the bond’s redemption are reinvested in currently outstanding municipal securities. If the maturing bond was a higher coupon than prevailing rates at its maturity date, the new bond’s lower coupon will tend to reduce the Series yield over time. Conversely if higher coupon bonds are available at the maturity (or call) date, they may be purchased, which has an uplifting effect on the Series yield over time.
