Series 7 - General Securities Representative Exam
An investor holds municipal bonds and his concern is being subject to AMT (alternative minimum tax). Which one of the following Municipal Bonds should he avoid?
Industrial Revenue BondsB
Special Assessment BondsD
The investor should avoid IDRBs. IDRBs are munis that are backed by a corporate lease. Since they MAY be considered non public purpose bonds, the interest MAY be subject to AMT