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Which Is an Advantage of Investing in Series EE U

Question 36

Multiple Choice

Which is an advantage of investing in Series EE U.S. Savings Bonds?


A) When a bond is cashed, the earned interest is exempt from federal income taxes.
B) Interest is not taxed by the federal government until the bond is cashed.
C) The interest rate on the bond is adjusted to keep up with inflation.
D) Series EE Bonds can be sold at a profit on the open bond market.
E) The rates on Series EE Bonds are usually higher than the rates offered on stocks or corporate bonds.

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