Which of the following types of bond is least suitable for inclusion in an IRA or 401-K account?
A) agency bonds
B) subordinated debentures
C) Treasury Inflation-Protected Securities (TIPs)
D) general obligation municipal bonds

Question

Quizplus · Accepted Answer

General obligation municipal bonds are least suitable for inclusion in an IRA or 401-K account because the primary advantage of these bonds is their tax-exempt status, which is redundant in already tax-advantaged accounts like IRAs and 401-Ks.

Which of the Following Types of Bond Is Least Suitable