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    Exam 6: The Economics of Interest-Rate Spreads and Yield Curves
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    Municipal Bonds Tend to Have Lower Yields Than Other Bonds
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Municipal Bonds Tend to Have Lower Yields Than Other Bonds

Question 55

Question 55

Multiple Choice

Municipal bonds tend to have lower yields than other bonds, ceteris paribus, due to


A) higher default risk.
B) lower taxes.
C) higher liquidity.
D) none of the above.

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