Which of the following statements is true?
A) Municipal bond interest is subject to explicit federal tax
B) Municipal bond interest is subject to implicit tax
C) Municipal bonds typically pay a higher interest rate than corporate bonds with similar risk
D) All of these are true
E) None of these is true

Question

Quizplus · Accepted Answer

Municipal bond interest is generally exempt from federal taxes, which results in an implicit tax advantage compared to taxable bonds.

Which of the Following Statements Is True