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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 32

Question 32

Multiple Choice

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


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

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