One primary difference between corporate and U.S. Treasury bonds is:
A) Interest from Treasury bonds is exempt from federal taxation.
B) Corporate bonds always pay interest periodically.
C) Treasury bonds always pay interest periodically.
D) Interest from corporate bonds is exempt from state taxation.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Treasury bonds always pay interest periodically, while with corporate bonds, it depends on the specific terms of the bond issuance. Option A is partially true, but it only applies to federal taxation, not all taxes. Option D is incorrect, as there is no exemption for state taxation on interest from corporate bonds. Option E is incorrect as well, as option C is a valid difference.

One Primary Difference Between Corporate and U