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Which Is an Advantage of Investing in Series EE U

Question 62

Multiple Choice

Which is an advantage of investing in Series EE U.S.Savings Bonds?


A) When a bond is redeemed, the earned interest is always exempt from federal income taxes.
B) Federal income tax on earnings is not due until the bonds are redeemed.
C) The interest rate on the bond is adjusted to keep up with inflation.
D) Series EE Bonds can be sold at a profit on the open bond market.
E) The rates on Series EE Bonds are usually higher than the rates offered on stocks or corporate bonds.

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