Which of the following statements is True?
A) Municipal bond interest is subject to explicit federal tax.
B) Municipal bond interest is subject to implicit tax.
C) Municipal bonds typically pay a higher interest rate than corporate bonds with similar risk.
D) All of these statements are True.
E) None of these statements is True.

Question

Quizplus · Accepted Answer

Municipal bond interest is generally exempt from federal tax, which results in an implicit tax advantage compared to taxable bonds.

Which of the Following Statements Is True