Series 7 - General Securities Representative Exam

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Jennifer is a millionaire and is concerned about her investments being taxed in the highest federal income tax bracket. She is also seeking a relatively low volatility investment. Which of the following might be suitable for her?

Preferred Stock
A
Class A Stock Mutual Fund
B
Municipal Bonds
C
Convertible Bonds
D

Explanations

The interest income paid on municipal bonds is exempt from federal tax. This may be the best choice based on the information given. Income from Corporate bonds, Most Mutual Funds and preferred stock are all federally taxable

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