Many Investors May Be Drawn to Municipal Bonds Because of the Bonds

question 67

Multiple Choice

Many investors may be drawn to municipal bonds because of the bonds':

• A) speculative grade ratings.
• B) high coupon payments.
• C) long periods until maturity.
• D) income exemption from federal taxes.

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Definitions:

Consideration

Something of value exchanged between parties in a contract, which can include money, services, or goods, making the contract legally binding.

Indorsement

A signature or stamp placed on a negotiable instrument (such as a check) that indicates the future control or ownership of the instrument.

Secondary Liability

Secondary liability occurs when a party is held responsible for the actions of another, typically in situations where the primary party fails to fulfill their obligations.

Contingent Liability

A potential financial obligation that may occur, depending on the outcome of a future event.