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Is it true that U.S. Treasury security is risk free? Why is it that municipal bonds are not taxed at the federal level, but are

Is it true that U.S. Treasury security is risk free? Why is it that municipal bonds are not taxed at the federal level, but are taxable across state lines? Why is it that U.S. Treasury bonds are not taxable at the state level? (You may need to dust off the history books for this one.)

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