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Question
Which of the following statements is most correct?a. Municipalities are not permitted to tax the interest income from securities issued by the U.S. Treasury.
b. Municipal bonds are securities issued by the U.S. Treasury.
c. The equivalent taxable yield is the before-tax yield on Treasury securities.
d. The yield on municipal bonds is more than that on Treasuries with the same maturity.
e. None of the above.
Answer
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