Which of the following statements is false?
A) The issuer of a bond is a borrower.
B) The person who buys a bond is a lender.
C) Interest earned on corporate bonds is exempt from federal income taxes.
D) The coupon rate on a bond is the percentage of the face value that the bondholder receives annually until the bond matures.

Question

Quizplus · Accepted Answer

Interest earned on corporate bonds is not exempt from federal income taxes. However, interest earned on certain types of bonds, such as municipal bonds, may be exempt from federal income taxes.

Which of the Following Statements Is False