A charitable organization issues bonds to fund a new community center. The organization is a nonprofit with no part of its earnings going to private shareholders. Are these bonds exempt from registration?

1. ANo, bonds are never exempt regardless of the issuer
2. BYes, because they are issued by a nonprofit charitable organization✓ Correct answer
3. CNo, because only equity securities can be exempt
4. DYes, but only if the bonds are guaranteed by a government entity

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