A customer owns a municipal bond that has been escrowed to maturity. Which of the following statements is TRUE?
a. The issuer has deposited money in an escrow account that will contain U.S. government securities used to pay off the municipal bonds at maturity
b. The issuer has deposited money in an escrow account that will contain U.S. government securities used to pay off the municipal bonds prior to maturity
c. The issuer has deposited money in an escrow account that will contain other municipal bonds used to pay off the municipal bonds at maturity
d. The issuer has deposited money in an escrow account containing U.S. government securities that will create a tax liability for the municipal bondholder at maturity