Which One of the Following Statements Is Correct Concerning Municipal

question 44

Multiple Choice

Which one of the following statements is correct concerning municipal bonds?

• A) Municipal put bonds are less valuable than comparable nonputable bonds.
• B) Highway bonds are generally issued as GO bonds.
• C) College dormitories are frequently financed by revenue bonds.
• D) Revenue bonds are risk-free.
• E) A hybrid bond is joint debt of a state and the federal government.

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Definitions:

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.

Savings Account

A deposit account held at a bank or institution that pays interest but typically has limitations on how often withdrawals can be made.

Interest

The expense involved in obtaining a loan, conventionally denoted as an annual percentage rate.