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Bubba Buys a Municipal Bond at a Discount and Holds

Question 91

Multiple Choice

Bubba buys a municipal bond at a discount and holds it to maturity. Which of the following is true?


A) interest is taxable as ordinary income
B) the capital gain is tax exempt
C) interest is tax exempt, but the capital gain is taxable
D) the capital gain is tax exempt, but the interest is taxable as ordinary income

Correct Answer:

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