How to read your results: Municipal Bonds

CUSIP--A unique alphanumeric identifier assigned to all bonds.

State Indicator--Most states do not tax the income from municipal bonds issued in their own state, but
may tax income from municipal bonds issued in other states. Typically, income from municipal bonds
issued by a U.S. territory (e.g., Puerto Rico, Guam, Guam, and the Virgin Islands) is tax-free regardless of
your state of residence. Please note that interest income on municipal bonds may be subject to the
Alternative Minimum Tax and state and local taxes. Discount bonds may be subject to capital gains tax.
TD Ameritrade does not provide tax advice. We suggest that you seek the advice of a qualified tax-
planning professional with regard to your personal circumstances.
Qty--The quantity of bonds that is being offered by the dealer. For example, 150 bonds is equivalent to
$150,000 face-value.

*Your requested purchase quantity might not be executed at the best price because the minimum quantity
being offered is higher than your order.*

Min.--The minimum order quantity that the offering dealer accepts. The minimum order for municipal
bonds at TD Ameritrade is 5 bonds, but the dealer offering the bonds may require a different minimum.

Issue--The name of the issuer: for municipal bonds, the name of the municipality issuing the
bonds. Clicking on the name opens a new page with more details about the offering. The detail page
includes a buy function with principal and accrued interest calculations. This column also includes
the call-feature details where applicable, along with the date and price at which the bonds could be
called by the issuer. The information may also include such other call features as “make whole”
calls, which allow the issuer to prepay the debt only upon a penalty payment, or other special
redemption features that are outlined in the prospectus.

Coupon--The rate on a bond that the issuer pays the investor annually until maturity. Most bonds pay
interest semiannually. If you own 10 bonds ($10,000 face-value) with a coupon rate of 6.5%, you receive
$650 interest annually, in two payments of $325 each. For zero-coupon bonds, this column shows 0.00,
and no interest payments are paid to you.

Orig. Maturity (original maturity)--The date on which the face value of the bonds is scheduled to be
repaid to you. This date may differ from the maturity date (compare with Maturity, below). For example,
for a prerefunded bond, the issuer promises to pay the principal back at an earlier date than originally
scheduled (e.g., original maturity 03-01/2029, prerefunded on 03-01-2019).

Maturity--The date on which the face value of the bonds is to be repaid to you. This date also represents
the date on which interest payments are made. For example, if a bond matures on
January 15th, interest payments are generally made on January 15th and six months later, on July 15th,
every year until the bonds mature. Municipal bonds may show a prerefunded date. Prerefunding occurs
when the issuer returns the face value of the bonds to the investor in advance of the scheduled maturity
date.

Ratings--Indicates the quality of the bonds being offered. Bonds are rated by independent ratings
agencies. TD Ameritrade offers bonds investment grade (Baa2/BBB) and higher. Highest-quality bonds
carry a rating of Aaa/AAA. Generally, TD Ameritrade shows Moody’s rating first, followed by the S&P
rating. For example, Baa2/BBB refers to a Moody’s rating of Baa2 and to an S&P rating of BBB.

Yield (YTM/YTW)--Yield to maturity (YTM) is your return on the bond, taking into account the total
annual interest payments, the purchase price, the redemption value, and the amount of time remaining
until maturity. The yield to worst (YTW) is the return to the call date or to maturity, whichever is lower
(e.g., the “worst case”). If you see a duplicate offering for the same CUSIP, consider its yield, coupon,
maturity, price, and quantity before you choose.

Price--The price you pay for each $1,000 bond as a percentage of face value.
A discount bond is priced below 100 (e.g., 98.8 or $988.00 per bond).
A par bond is priced at 100, or equal to the face value of the bond ($1,000 per bond).
A premium bond is priced above 100 (e.g., 104.827 or $1,048.27 per bond).
Generally, if the bond you are buying has an interest rate above the current market for similar bonds, you
pay more for it (a premium). If it has an interest rate below the current market rate, you pay less for it
(discount). The price shown includes all fees. There is no extra fee to buy or sell bonds at TD Ameritrade.
There is a $25 flat fee to enter an order for U.S. Treasuries at auction.

Buy--Click this link to open a trade ticket that includes calculations for your trade, including principal
and accrued interest based on the number of bonds in your order.