Interest from which of the following types of bonds is included in federal taxable income? a. City of New Orleans bond b. Bond of the Commonwealth of Puerto Rico c. State of California bond d. U.S. Treasury Bond e. All of these choices are excluded from income.

3

Which two of the following are the largest categories of fixed-income securities in the U.S.? I. U.S. government debt II. corporate debt III. municipal government debt IV. real estate mortgage debt

Briefly describe the differences between inflation and Deflation. Briefly describe what Municipal Bonds are as compared to General Obligation Bonds.

The following entities issue bonds to engage in long-term borrowing EXCEPT: Multiple Choice O O the federal government. state and local governments. corporations. individuals.

Which of the following best describes the accounting for discounts and premiums for bonds purchased by a fiduciary for an estate? a. Premiums are amortized, but discounts are not. b. Discounts are amortized, but premiums are not. c. GAAP guidelines for amortization are followed, i.e., both are amortized. d. Like bonds purchased prior to the death, neither discounts nor premiums are amortized.