Munipcal bonds - bond specialist provided by agencies and governments, are fundings used to build projects like airports, infrastructure, and schools. They have a reputatuon for being a low-risk source of retirement income. According to history, these state and local bonds have low chances of defaulting and most of them are tax-free. This means that investors don't have to worry about paying any hefty taxes based on interest at all. However, the safety of these bonds have been affected by Covid-19, which made investors wonder if the cash-strapped governments can continue paying the interest on their debt.