Answer:
C)municipal bond fund.
Step-by-step explanation:
These are the options for the question below;
A)corporate bond fund.
B)aggressive growth fund.
C)municipal bond fund.
D)money market fund.
From the question, we are told that
If ABC Fund pays regular dividends, offers a high degree of safety of principal, and appeals especially to investors seeking tax advantages.
In this case ABC is municipal bond fund. municipal bond fund are regarded as debt securities usually issued by a state especially US. Any dividend that comes in as result of municipal bond cannot be attributed to federal tax income. municipal bond fund gives room to preserve one's capital in the process of making interest, since some doesn't come with tax.