Which of the Following Characteristics Is True of Municipal Bonds

question 50

Multiple Choice

Which of the following characteristics is true of municipal bonds?

• A) They general have higher rates than corporate bonds of equal risk.
• B) Capital gains on municipal bonds are exempt from federal taxation.
• C) They pay interest income that is exempt from federal taxation.
• D) They are default free.

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Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often at the expense of other cultures.

Ethnic Gloss

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