New to bond investment and seek clarification -
On Charles Schwab Bond Source chart for fixed income offerings, the followings are listed
CD 1yr: 2.6
Muni (AAA) 1yr: 2.71
I assume it meant annual return (APY?) for CD is 2.6% and for muni bond is 2.71. However, when clicking into Muni (AAA) 2.71, a new list emerges but on the list the highest YTM is only 1.8.
Q1. any idea where 2.71 (return?) comes from?
Q2. if the highest YTM for AAA Muni bonds is 1.8 while CD rate is 2.6, is it correct that CD gives a BETTER return in the 1-yr time frame ?
Q3. many online articles suggest tax-free bonds generate higher returns than CDs. But I am not finding any evidence for it. What did I miss ?
Need help to better understand bonds. Thank you.