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You Hold Bonds Issued by the State of Ohio

Question 108

Multiple Choice

You hold bonds issued by the state of Ohio.The interest you earn each year on these bonds

A) is not subject to federal income tax and so these bonds pay a higher interest rate than otherwise comparable bonds issued by the U.S.government.
B) is not subject to federal income tax and so these bonds pay a lower interest rate than otherwise comparable bonds issued by the U.S.government.
C) is subject to federal income tax and so these bonds pay a higher interest rate than otherwise comparable bonds issued by the U.S.government.
D) is subject to federal income tax and so these bonds pay a lower interest rate than otherwise comparable bonds issued by the U.S.government.

Correct Answer: