Products & RisksPregunta 13 de 125

Interest income from U.S. Treasury securities is:

a.Taxable at the federal level but exempt from state and local income tax
b.Exempt from federal tax but taxable at the state level
c.Fully exempt from all income taxes
d.Taxable only if the securities are sold before maturity

Explicación

Interest on U.S. Treasury securities is subject to federal income tax but is exempt from state and local income taxes. This is the reverse of municipal bonds, whose interest is generally federal-tax-exempt.

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