Answer:
b. A municipal bond is a debt obligation issued by the federal government.
Explanation:
The municipal bond is commonly called as the Muni Bond, is the bond which is issued by the local government or the territory. The municipal bond is used to finance the public projects generally.
Hence, Option A is correct. Option B is incorrect.
The  interest income which is received by municipal bonds' holders is excludable often from the gross income for the purposes of the federal income tax and it is exempted from the state and the local income tax.
Hence, Option C and D are correct.
