Identify a true statement about government securities. options: They normally pay their holders a stated rate...

Identify a true statement about government securities.

options:

	They normally pay their holders a stated rate of interest until they mature.
	Interest income earned on municipal bonds is subject to federal income taxes.
	State and local governments are the sole issuers of government securities.
	They are IOUs issued by government entities when they sell stocks of public corporations to private firms.

Expert Solution

The true statement is:-

a. They normally pay their holders a stated rate of interest until they mature.

jeff jeffy answered 3 years ago

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