Multiple Choice Question

The main reason it is important to distinguish between debt and equity is that the benefits and risks

never change

are similar

are different

Select all that apply

How is investing in U$.$S$.$ Treasury bonds different from investing in corporate bonds?

Treasury issues have no default risk.

U$.$S$.$ Treasury bonds have longer maturities than corporate bonds.

Interest from U$.$S$.$ Treasuries is exempt from all taxation while corporate bond interest is taxable at all levels.

Interest from U$.$S$.$ Treasuries is exempt from taxes at the state level but corporate interest is not.