Which Is an Advantage of Investing in Series EE U

question 94

Multiple Choice

Which is an advantage of investing in Series EE U.S. Savings Bonds?

• A) When a bond is cashed, the earned interest is exempt from federal income taxes.
• B) Interest is not taxed by the federal government until the bond is cashed.
• C) The interest rate on the bond is adjusted to keep up with inflation.
• D) Series EE Bonds can be sold at a profit on the open bond market.
• E) The rates on Series EE Bonds are usually higher than the rates offered on stocks or corporate bonds.