Asked by Lavkush Tamrakar on May 06, 2024
Verified
Municipal bonds are exempt from interest payments of federal income tax.
Federal Income Tax
A tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.
- Comprehend the various financial instruments and securities, their associated risk levels, and mechanisms for insurance.
Verified Answer
BL
Briana LegerMay 08, 2024
Final Answer :
True
Explanation :
Municipal bonds are generally exempt from federal income taxes on the interest payments, making them an attractive investment for those in higher tax brackets.
Learning Objectives
- Comprehend the various financial instruments and securities, their associated risk levels, and mechanisms for insurance.