This week’s study question from the Solomon Online Exam Simulator question database is now available.
Question (Relevant to the Series 6, Series 7, Series 62, and Series 82):
Which of the following bonds are subject to Federal income tax on the interest they pay?
I. GNMA’s
II. Corporate bonds
III. Commercial paper
IV. Treasury Bills
Answers:
A. I and IV
B. II and IV
C. I, II, and III
D. I, II, III, and IV
Correct Answer: D. I, II, III, and IV
Rationale: All of these bonds are subject to Federal income tax. It is only certain types of municipal bonds that are exempt from Federal taxation.
Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.