Which of the Following Is Not a Tax Advantage of a Series

Multiple Choice

Which of the following is not a tax advantage of a Series EE Saving Bond?

A) taxes are paid as the original issue discount on the bond is amortized
B) interest earned is exempt from state taxation
C) taxes are deferred until the bond is cashed in at maturity
D) interest is exempt from federal taxation when used for qualifying educational expenses
E) None of these