Which is true about the interest on corporate bonds?
a. it is taxed a capital gain
b. it is tax deductible
c. it does not incur taxes
d. it is taxed as ordinary income

The correct answer is letter B. It is tax deductible. The true about the interest on corporate bonds is that it is subject to federal and state income tax. These interests are deducted by taxes that are directly brought to federal and state income at a certain rate.

Whats the answer choices, but a fiscal policy is the means by which the government adjusts its spending limit and tax rates to monitor and influence a nation's economy.