Series 7 - General Securities Representative Exam
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Advisors often recommend Municipal Bonds to their clients. Which of the following is true about Municipal Bonds?
Interest paid on them may be federally tax free
A
Municipal bonds are T Bonds
B
Municipal Bonds are generally for lower tax bracket investors
C
Municipal Bonds are issued by S&P 500 Companies
D
Explanations
Interest paid on municipal bonds is generally federally tax-free, making them an attractive investment option for individuals in high income tax brackets