Which bond type would a small town build a sewer system? a. u. s. treasury bonds b. corporate bonds c. junk bonds d. municipal bonds

The correct answer is D.

Municipal bonds are issued by a state, a municipality or a county, and constitute a form of financing a large investment, which requires a large-size loan. The large loan is divided into a certain number of debt securities of equal value. Investors buy those securities, and will be entitled to the devolution of the principal of the bond (total amount lent that is represented by the face value of the security) and to interest payments.