Bubba buys a US treasury bond. The interest he earns is:

Name: Bubba buys a US treasury bond. The interest he earns is:
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subject to federal income tax but exempt from state income tax. The interest on US government securities is taxed by the US government but not by state governments. The opposite is true of bonds issued by a state, which are exempt from federal tax but subject to state taxes-except for taxes of the state that issues them.

Bubba Buys a US Treasury Bond