The features of Municipal bonds make them attractive to high income, bracket investors. Multiple Choice Extra-tax Low-tax No-tax Average-tax High-tax

The correct answer is letter "D": High-tax.

Explanation:

A municipal bond is a debt instrument used for collecting money for a project by a city, state, county or other local government. Municipal bonds also referred to as "Munis" are debt instruments as they are primarily used for the transfer of funds to a lender when an investor purchases one. In return, in the years before maturity, the authority promises to pay interest.

Municipal bonds are attractive to investors classified in the high-income, high-tax bracket because they are exempt from federal taxes.

a.   is the correct choice.

good luck. : )

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