184k views
1 vote
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

1 Answer

3 votes

Answer:

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

Step-by-step 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.

User Mike Rouse
by
4.5k points