Which of the following statements is correct? Interest payments paid to U.S. Fed

Question

Which of the following statements is correct?

Interest payments paid to U.S. Federal bond holders are not taxed at the federal level

Interest payments paid to municipal bond holders are not taxed at the federal level

Interest payments paid to municipal bond holders are not taxed at the state level

interest payments paid to corporate bond holders are not taxed at the state level.

Interest payments paid to U.S. Federal bond holders are not taxed at the federal level

Interest payments paid to municipal bond holders are not taxed at the federal level

Interest payments paid to municipal bond holders are not taxed at the state level

interest payments paid to corporate bond holders are not taxed at the state level.

Explanation / Answer

Interest payments paid to municipal bond holders are not taxed at the state level

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