To determine which bond is normally exempted from taxes, let’s analyze each option:

1. **Corporate Bond**: Generally, the interest earned on corporate bonds is subject to federal, state, and local taxes.

2. **Government Bond**: Interest from U.S. government bonds is typically subject to federal taxes but exempt from state and local taxes.

3. **Municipal Bond**: Interest earned on municipal bonds is usually exempt from federal taxes and, in many cases, state and local taxes as well.

4. **All of the Above**: This option is not accurate since only municipal bonds are generally exempt from federal income taxes.

### Final Answer
The correct answer is **c. municipal bond**.

Question

To determine which bond is normally exempted from taxes, let’s analyze each option:

1. **Corporate Bond**: Generally, the interest earned on corporate bonds is subject to federal, state, and local taxes.

2. **Government Bond**: Interest from U.S. government bonds is typically subject to federal taxes but exempt from state and local taxes.

3. **Municipal Bond**: Interest earned on municipal bonds is usually exempt from federal taxes and, in many cases, state and local taxes as well.

4. **All of the Above**: This option is not accurate since only municipal bonds are generally exempt from federal income taxes.

### Final Answer
The correct answer is **c. municipal bond**.

Knowee AI · Accepted Answer

To determine which bond is normally exempted from taxes, let’s analyze each option:

1. **Corporate Bond**: Generally, the interest earned on corporate bonds is subject to federal, state, and local taxes.

2. **Government Bond**: Interest from U.S. government bonds is typically subject to federal taxes but exempt from state and local taxes.

3. **Municipal Bond**: Interest earned on municipal bonds is usually exempt from federal taxes and, in many cases, state and local taxes as well.

4. **All of the Above**: This option is not accurate since only municipal bonds are generally exempt from federal income taxes.

### Final Answer
The correct answer is **c. municipal bond**.

______bond is normally exempted from taxesa.corporate bondb.government bondc.municipal bondd.all of the above