Which of the following is not a true statement regarding municipal bonds?
A) A municipal bond is a debt obligation issued by state or local governments.
B) A municipal bond is a debt obligation issued by the Federal Government.
C) The interest income from a municipal bond is exempt from federal income taxation.
D) The interest income from a municipal bond is exempt from state and local taxation in the issuing state.

Question

Quizplus · Accepted Answer

Municipal bonds are issued by state or local governments, not the Federal Government. The other statements are true - municipal bonds are debt obligations, interest income is often exempt from federal income tax, and interest income is often exempt from state and local taxation in the issuing state.

Which of the Following Is Not a True Statement Regarding