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Give Two Reasons Why a Municipality Would Want to Issue

question 45

Essay

Give two reasons why a municipality would want to issue a taxable municipal bond and thereby have to pay a higher yield than if it issued a tax-exempt municipal bond?


Definitions:

Strict Liability

Legal responsibility for damages or injury even if the person found strictly liable was not at fault or negligent.

Rattlesnake

A venomous snake known for the distinctive rattle at the end of its tail, used as a warning signal.

Dangerous Things

Objects or conditions that present a significant risk of harm to people, property, or the environment.

Glass Aquarium

A transparent tank made of glass, designed to house aquatic plants, fish, or other water-dwelling life forms for observation or research.

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