Ask Question
9 June, 22:11

The interest paid on a municipal bond, otherwise known as a muni, is generally exempt from federal income taxes. therefore, the coupon rate on these bonds is considerably lower than a corporate bond of equivalent risk. true or false?

+4
Answers (1)
  1. 9 June, 22:41
    0
    That statement is true

    A corporate Bond is way more senstive to the condition of the market which will affect the volatility of its value. Since government could technically produce their money from the federal reserve, the municipal bond is technically will always be paid (by risking inflation)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The interest paid on a municipal bond, otherwise known as a muni, is generally exempt from federal income taxes. therefore, the coupon rate ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers