Which of the following statements concerning bonds are CORRECT?

I. Bondholders receive less favorable tax treatment from corporate bonds than municipal bonds. II. Firms increase their risk of financial failure by issuing bonds. III. The repayment of the bond principle is tax-deductible. IV. Corporate bonds normally have less risk than treasury bonds.

Group of answer choices

a) I, II, and III only

b) II only

c) I and II only

d) III and IV only

e) II and IV only