Savings bonds sell for less than their face value because

Question

a.banks compete to sell them.
b.this is how they pay interest.
c.they pay dividends twice a year.
d.interest is tax-exempt.
Its D right?

Answer 1

I disagree with your answer.

Check this article to see if it supports b. as the best answer.

http://www.sec.gov/answers/savingsbond.htm