Bonds issued under this chapter and:

1. (1) proceeds received from their sale by a holder, to the extent of the holder's costs of acquisition;
2. (2) proceeds received on their redemption before maturity;
3. (3) proceeds received at their maturity; and

4. (4) interest received on them;

   are exempt from state taxes as provided by IC 6-8-5 .

As added by P.L.25-1987, SEC.8.