The Interest Rate on Tax-Exempt Bonds Rises Relative to the Interest

question 55

Multiple Choice

The interest rate on tax-exempt bonds rises relative to the interest rate on U.S. Treasury securities when ________.

• A) income tax rates are raised
• B) tax-exempt bonds become more widely traded
• C) corporate bonds become riskier
• D) income tax rates are lowered

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Bachelor's Degree

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