Which of the following statements are true regarding municipal bonds?

I) A municipal bond is a debt obligation issued by state or local governments. II) A municipal bond is a debt obligation issued by the federal government. III) The interest income from a municipal bond is exempt from federal income taxation. IV) The interest income from a municipal bond is exempt from state and local taxation in the issuing state. A) I, II, and III only B) I, III, and IV only C) I and IV only D) I and III only E) I and II only