Municipal bonds are debt instruments issued by state and local governments (A), often offer tax-exempt interest income for investors, making them exempt from federal taxes (B), and are indeed certificates of debt that represent a promise to repay the borrowed amount along with interest (C).

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Municipal Bonds Are

Question 15

Multiple Choice

Municipal bonds are:

A) Debt instruments of state governments.
B) Are exempt from federal taxes
C) Certificates of loans, or promises from a a borrower to a lender to repay principal and interest accrued.
D) All of the above.

Correct Answer: