Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A) State and local governments cannot default on their bonds.
• B) Bonds issued by state and local governments are called municipal bonds.
• C) All government issued bonds - local, state, and federal - are federal income tax exempt.
• D) The coupon payment on municipal bonds is usually higher than the coupon payment on Treasury bonds.