Question

What is a key advantage of tax-free bonds?

a.

Guaranteed returns

b.

Low-risk profile

c.

High interest income without tax incidence

d.

Short maturity period

Posted under IC 89 Management Accounting

Answer: (c).High interest income without tax incidence Explanation:Tax-free bonds offer the advantage of earning high interest income without any tax incidence, making them attractive for investors.

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