Which of the Following Is True Concerning Interest Rates on Bonds

question 13

Multiple Choice

Which of the following is true concerning interest rates on bonds?

• A)The tax treatment of interest earned on municipals bonds makes the interest rate on them higher than otherwise.High default risk makes the interest rate on a bond higher than otherwise.
• B)The tax treatment of interest earned on municipals bonds makes the interest rate on them higher than otherwise.High default risk makes the interest rate on a bond lower than otherwise.
• C)The tax treatment of interest earned on municipals bonds makes the interest rate on them lower than otherwise.High default risk makes the interest rate on a bond higher than otherwise.
• D)The tax treatment of interest earned on municipals bonds makes the interest rate on them lower than otherwise.High default risk makes the interest rate on a bond lower than otherwise.

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IT and Internet

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Bureaucracy

A system of government or business that is characterized by fixed rules, a hierarchy of authority, and a complex structure of administration and control.

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Strategies and practices that give employees authority and power to make decisions and contribute to the company's success.

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An organizational hierarchy where authority and responsibility flow from top management down through various levels of management.