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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Definitions:

Impression Management

is a process in which individuals attempt to influence the perceptions of others about a person, an object, or an event by regulating and controlling information in social interactions.

Behavior Display

The observable expression of emotions, intentions, or social status through physical actions or reactions.

Stereotype Performance

The act of behaving in a manner that is consistent with commonly held stereotypes about a particular group or identity.

Traditional Gender Roles

Traditional gender roles refer to the set of societal norms dictating what behaviors are generally considered appropriate, acceptable, and desirable based on one's perceived or actual sex or gender.