Which of the following statements is TRUE? A) State and local governm

Which of the following statements is TRUE?

A) State and local governments cannot default on their bonds.
B) Bonds issued by state and local governments are called municipal bonds.
C) All government issued bonds—local, state, and federal—are federal income tax exempt.
D) The coupon payment on municipal bonds is usually higher than the coupon payment on Treasury bonds.

ANSWER

B