The most important feature of municipal bonds is:
A)the wide range of denominations and maturities.
B)that the interest is not taxable by the federal government.
C)the risk-free nature of this investment.
D)its appeal to investors needing growth.

Question

Quizplus · Accepted Answer

The most important feature of a municipal bond is the tax-exempt nature of the interest payment. Income from municipal bonds cannot be taxed by the IRS. Furthermore, income from municipal bonds is also exempt from state and local taxes if bought within the locality in which one resides.

The Most Important Feature of Municipal Bonds Is