I notice that in the United States, there seem to be three main kinds of bonds: "government bonds", meaning those issued by the United States Treasury, "municipal bonds" issued by municipalities, like towns and schools, and corporate bonds. Municipal bonds seem to often have some kind of tax advantage.
However, in this mix, where do state bonds fit in? For example, if the State of Minnesota issues a bond is that considered a "municipal" bond? If so, I don't get the terminology because Minnesota is a state, not a municipality.