If a Tax-Exempt Bond Will Yield Approximately

question 55

Essay

If a tax-exempt bond will yield approximately .65 (1 - .35) times the yield on a taxable bond of equal risk, who benefits from the tax exemption: the Federal government, the state and local governments who issue the bonds, or the investors?

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Definitions:

Gender Prejudices

Biased attitudes or beliefs about individuals based on their gender, often resulting in unequal treatment or discrimination.

Consciously Perceive

The process of being aware of and understanding sensory information or stimuli through one's conscious mind.

Finger-Thumb Distance

The measurement of the span between the thumb and any of the fingers, especially used in anthropometric studies or to assess physical or motor development.

Blindsight

A phenomenon in which individuals who are perceptually blind in certain areas of their visual field demonstrate some response to visual stimuli, indicating functioning of visual pathways despite the lack of conscious visual experience.