Which of the Following Is Not a Tax Advantage of a Series

question 49

Multiple Choice

Which of the following is not a tax advantage of a Series EE savings bond?

• A)Taxes are paid as the original issue discount on the bond is amortized.
• B)Interest earned is exempt from state taxation.
• C)Taxes are deferred until the bond is cashed in at maturity.
• D)Interest is exempt from federal taxation when used for qualifying educational expenses.
• E)None of the choices are correct.