Which one of the following is true?

A. Municipal bonds are taxable for federal, state and local taxes.

B. Treasury issues are exempt from federal income taxes but, not state income taxes.

C. Forecasting risk is defined as the possibility that incorrect decisions will be made due to erroneous cash flow projections.

D. The key means of defending against forecasting risk is to ignore any potential salvage value that might be realized.

E. Forecasting risk is defined as the possibility that tax rates could change over the life of a project.