T. Rowe Price High Yield Municipal Bond Fund

Frequently Asked Questions About PRFHX

What does PRFHX invest in?

This fund aims to generate a substantial level of income that is exempt from federal income taxes. It achieves this primarily through investments in long-term municipal bonds with credit ratings ranging from lower to upper-medium grade. Typically, a minimum of 80% of the income distributed by the fund will qualify for federal tax exemption. However, investors should be aware that up to 20% of the income might be derived from securities subject to the Alternative Minimum Tax. The strategy generally involves seeking municipal bonds that offer higher yields, including those categorized as "non-investment grade" (rated BB or lower by a major credit rating firm or by T. Rowe Price), which are commonly known as "junk" bonds.

What is the expense ratio of PRFHX?

T. Rowe Price High Yield Municipal Bond Fund (PRFHX) charges an expense ratio of 0.64%. This is the annual fee deducted from fund assets to cover management and operations.

What is PRFHX's dividend yield?

PRFHX's trailing-twelve-month yield is 4.30%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of PRFHX?

Effective duration measures PRFHX's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. PRFHX's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of PRFHX?

PRFHX's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of PRFHX?

Yield to maturity (YTM) is the total return you'd earn from PRFHX if every bond in the portfolio is held to maturity at the current price. PRFHX's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.