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. Option B is incorrect because it mentions that the debt obligation is issued by the federal government, which is inaccurate.

Which of the Following Is Not a True Statement Regarding