Investors who seek triple (federal, state, and local)tax-free income should invest in ________ bond funds.

Question

Quizplus · Accepted Answer

Single-state municipal bond funds are the best choice for investors seeking triple tax-free income, as the interest income earned from these bonds is exempt from federal, state, and local taxes. Convertible bond funds may offer tax-free income, but they do not necessarily provide triple tax-free income. Indexed and mortgage-backed bond funds do not typically offer tax-free income.

Investors Who Seek Triple (Federal, State, and Local)tax-Free Income Should