Capital market instruments: Municipal bonds

Municipal bonds supported only by revenue from a specific government project, such as the N$.$J$.$ Turnpike, are called:

General obligation bonds

Revenue bonds

Separate Trading of Registered Interest and Principal of Securities

Treasury Inflation$-$Protected Securities

Which of the following are characteristics of municipal bonds? Check all that apply.

The interest income earned from them is usually not exempt from state taxes if issued by a municipality within that state.

They pay a risk premium to compensate for the possibility of default.

They are more liquid than Treasury securities$.$

The interest income earned from them is usually exempt from federal taxes.