Bonds issued by the U.S.government:

Question

Quizplus · Accepted Answer

Bonds issued by the U.S. government are considered to be free of default risk, as the government has the ability to raise funds through taxation and can print money to repay its debts.

Answer: D 
 While bonds issued by individual states may have higher coupons than those issued by the U.S. government, interest paid on U.S. government bonds is exempt from federal income taxes, making them attractive to investors in higher tax brackets.

Therefore, the correct choices are C and D.

Bonds Issued by the U.S.government