Answer: the correct answer is C interest is currently state and local tax exempt.
Explanation:
A municipal bond is a debt obligation issued by a non-profit organization.
The option C. offers regular or common features that's why it is the correct answer (they are not significant).
Final answer:
The significant investment feature that does NOT typically apply to municipal bonds is that interest is currently state and local tax exempt; exemptions on state and local taxes can vary depending on the investor's state of residence and the state that issues the bond.
Explanation:
The significant investment features for the purchaser of municipal bonds include tax exemptions on interest, potential diversification through different maturities and issues, and the availability of insured issues to minimize credit risk. However, the correct option that does NOT typically apply to municipal bonds is option C: interest is currently state and local tax exempt. While interest on municipal bonds is often federally tax-exempt, it is not always exempt from state and local taxes. This exemption depends on the state in which the investor resides and the state that issues the bond, meaning it is not a uniform feature across all municipal bonds.