Answer :
Answer:
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.