Which of the following statements are correct concerning municipal bonds?

I. Yields on municipal bonds are usually lower than yields on Treasury bonds.
II. Municipal bonds are most appealing to individuals with high incomes.
III. Interest on a municipal bond is exempt from federal income tax.
IV. Municipal bonds are less risky than Treasury bonds.

A) I, II, III and IV
B) I, II and III only
C) II, III and IV only
D) II and III only


Answer: B

Business

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