Which of the Following Statement(s) Is (Are) True Regarding Municipal

Multiple Choice

Which of the following statement(s) is (are) true regarding municipal bonds?I) A municipal bond is a debt obligation issued by state or local governments.II) A municipal bond is a debt obligation issued by the federal government.III) The interest income from a municipal bond is exempt from federal income taxation.IV) The interest income from a municipal bond is exempt from state and local taxation in the issuing state.

A) I and II only
B) I and III only
C) I, II, and III only
D) I, III, and IV only
E) I and IV only