The First Trust Combined Series 487: Tax Exempt Municipal Income Trust Series 2 is a unit investment trust focused on providing investors with federally tax-exempt income. Its primary function is to invest in a diversified portfolio of municipal bonds, which are issued by state and local governments throughout the United States. The trust targets high-quality, investment-grade securities, specifically chosen to generate income that is generally exempt from federal income taxes, making it particularly attractive for investors seeking tax-advantaged cash flow. This trust is structured with a defined lifespan, meaning it will terminate at a predetermined date, at which point the underlying bond holdings are typically liquidated and proceeds distributed to investors. By pooling a broad selection of municipal securities, it offers diversification across regions and issuers, mitigating individual credit risk. The trust combines the goals of stable current income and capital preservation suitable for conservative investors, and its market role centers on providing access to professionally selected municipal bonds in a cost-effective, transparent, and tax-efficient package.
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