Zero$-$coupon bonds are the best way for high$-$income taxpayers to extract maximum value from tax$-$exempt state and local government bonds because:

a$.$ Zero$-$coupon bonds include more transaction fees.

b$.$ Zero$-$coupon bonds allow the investor to make additional tax$-$exempt investments.

c$.$ The interest earned on the accumulated principal and interest is not tax$-$exempt.

d$.$ Zero$-$co$$pon bonds are sold for nearly their full face value and provide most of their income in the form of interest.

e$.$ The investments pay interest continually.