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dedylja [7]
3 years ago
11

Which bond recommendation would be the MOST safe for an individual who seeks income that is free from federal income tax?

Business
1 answer:
12345 [234]3 years ago
3 0

Answer:

AA-rated revenue bond that is escrowed to maturity.

Explanation:

AA-rated revenue bond that is escrowed to maturity, is the bond recommendation for an individual who seeks income that is free from federal income tax. Escrowed to maturity bond are pre-funded municipal bond and it is backed by the government. The Issuer invests the new bond´s income too high credit securities and also issuer hold proceeds from the new bond issue in a separate escrow account to pay off existing bond when it matures.

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