Thomas is a bondholder in the municipal corporation of Oklahoma. Not being much of a risk-taker, Thomas prefers these kinds of bonds as they are usually viewed as safe investments and interest income earned on these bonds is exempt from federal income taxes. Given this information, one can conclude that Thomas holds _____.

Question

Quizplus · Accepted Answer

Municipal bonds are a type of government security, and they are generally considered safe investments with interest income that is exempt from federal income taxes.

Thomas Is a Bondholder in the Municipal Corporation of Oklahoma