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?

---

Definitions:

Magnetic Strips

Strips of magnetic material often used on credit cards and identification cards to store data digitally for swipe access or transactions.

Homeowners' Insurance

A form of property insurance that covers losses and damages to an individual's house and assets in the home.

Hazards

Potential sources of danger or harm to health, safety, or the environment.

Writ of Attachment

is a legal document issued by a court ordering the seizure of property to secure satisfaction of a judgment.