Muni Bonds Make A Mini-Comeback // Good Returns Help Boost Confidence Of Investors

For the investor in the 28 percent or higher tax bracket with atleast $5,000 to plunk down, municipal bonds have always been a good,safe place to put a piece of the nest egg.

Yet muni holders have had their share of worries in the last fewyears.

With the rest of the bond industry, investors in municipals -tax-exempt, government-backed bonds funding the buildings of roads,hospitals, schools and other public projects - have watched fallinginterest rates wreak havoc on their portfolios.

Lower rates meant that municipalities called in many of theirolder, higher-yielding bonds so they could borrow more cheaply.Investors looking for a better-than-CD return saw …