Many investors may be drawn to municipal bonds because of the bonds':

Question

Quizplus · Accepted Answer

Municipal bonds have an exemption from federal taxes, which makes them attractive to investors in higher tax brackets. This means that the interest earned on municipal bonds is not subject to federal income tax, which can result in greater after-tax returns compared to other types of bonds. The other options listed are not necessarily desirable characteristics for bonds - speculative grade ratings indicate higher risk, high coupon payments may signal a riskier investment, and long periods until maturity may limit liquidity.

Many Investors May Be Drawn to Municipal Bonds Because of the Bonds