Solved

The State of Massachusetts Has Issued a General Obligation (G

Question 121

Multiple Choice

The state of Massachusetts has issued a general obligation (G.O.) bond that pays 3% interest. As an agent selling this bond, you can legitimately tell the investor that


A) the bond is guaranteed by the state of Massachusetts and is, therefore, a risk-free investment.
B) the interest income the investor receives from the bond will be free from federal taxation.
C) all state general obligation bonds are also guaranteed by the federal government.
D) all of the above statements are true.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents