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Which of the following statements about are true about municipal bonds? (Select all that apply: 3 of the answers below are correct.)

Which of the following statements about are true about municipal bonds? (Select all that apply: 3 of the answers below are correct.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Which of the following statements about are true about municipal bonds? (Select all that apply: 3 of the answers below are correct.) O Municipal bonds are typically backed by a pool of residential mortgages O Intrest payments dy municipal bonds are exempt from federal income täxes and most state & local income taxes O Municipal bonds can typically be exchanged for sstock in the underlying issuer at the discretion of the bond holder. O A municipal bond sold to finance a specific revenue-generting project and backed by cash flows from that project are called "Revenue Bonds". O A municipal bond backed by the full faith & credit of the issuer is called a "General Obligtion Bond". O There is NO secondary market for municipal bonds. O municipal bonds are generally considered to be low risk because they are insured by the FDIC
Transcribed Image Text:Which of the following statements about are true about municipal bonds? (Select all that apply: 3 of the answers below are correct.) O Municipal bonds are typically backed by a pool of residential mortgages O Intrest payments dy municipal bonds are exempt from federal income täxes and most state & local income taxes O Municipal bonds can typically be exchanged for sstock in the underlying issuer at the discretion of the bond holder. O A municipal bond sold to finance a specific revenue-generting project and backed by cash flows from that project are called "Revenue Bonds". O A municipal bond backed by the full faith & credit of the issuer is called a "General Obligtion Bond". O There is NO secondary market for municipal bonds. O municipal bonds are generally considered to be low risk because they are insured by the FDIC
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