Which of the Following Is False

Which of the following is false?

A) The issuer of municipal bonds is able to borrow at a lower rate than if taxes would have to be paid on the interest earned by the buyer.
B) The interest on municipal securities is always exempt from all federal taxes and state taxes.
C) Municipal bonds are issued by state, county, and local governments to finance public projects such as schools, utilities, roads, and transportation projects.
D) Municipal bonds are particularly attractive to taxpayers in high income tax brackets.