Everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on Treasury securities when A. income tax rates are lowered; B. income tax rates are raised; C. municipal bonds become more widely traded; D. corporate bonds become riskier; ...
A. the interest rate on municipal bonds minus the interest rate on treasury bonds. B. the interest rate on treasury bonds minus the interest rate on default-free bonds C. the interest rate on corporate bonds minus the interest rate on treasury bonds. D. the interest rate on treasury bonds...
THE INTEREST FOR THE MUNICIPAL BONDSEugenia Grecu
the same investors may receive more than the par value in a secondary market sale. “Duration” permits an investor to estimate how much a bond’s price may rise or all depending on movements in interest rates. Understanding duration, how it a ects the price o bonds and what actors a ect...
Because of the tax-exempt feature of municipal bonds, the yield on municipalbondsis less than that on Treasuries with the same maturity. The yield on a taxable bond issue after federal income taxes are paid is called the after-tax yield: ...
State and local governments often pay higher interest rates than necessary on their new municipal bonds sold competitively because of the use of inefficient bidding rules and of a flawed measure of interest rate to evaluate the bids. This paper answers the question: if municipalities pay more than...
D、maintain liquid markets for corporate bonds. 点击查看答案 第4题 Which of the following are true concerning the distinction between interest rates and return? A、The rate of return on a bond will not necessarily equal the interest rate on that bond. B、The return can be expressed as the...
Bond yields and bond prices move in opposite directions, impacting the market value of other investments. Learn more about how interest rates and inflation affect bonds prices and bond yields.
Treasury Bond: Interest Rates and Maturities U.S. Treasury Bond Yield: 30-Year T-Bond Returns (3-Year Chart) U.S. Treasury Securities: T-Bills vs. T-Notes vs. T-Bonds How to Buy Treasury Bonds: TreasuryDirect Auction Process U.S. Treasury Bonds: Guidelines on Taxes Risks of Treasury ...
U.S. Treasury debt is the benchmark used to price other domestic debt and is an influential factor in setting consumer interest rates. Yields on corporate, mortgage, and municipal bonds rise and fall with those of theTreasuries, which are debt securities issued by the U.S. government. ...