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 Saving 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 these