What is the major difference between municipal bonds and other types of bonds?
A) Municipal bonds are always insured; other bonds are not.
B) Unlike other bonds, municipal bonds sell at a discount.
C) Municipal bond interest is tax-exempt; interest on other bonds is not.
D) There is no brokerage commission on municipal bonds unlike other bonds.

Question

Quizplus · Accepted Answer

Municipal bond interest is typically exempt from federal income tax and sometimes state and local taxes, which is a key difference from other types of bonds.

What Is the Major Difference Between Municipal Bonds and Other