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    Exam 6: The Structure of Interest Rates
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    The Main Advantage of Municipal Securities Is That
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The Main Advantage of Municipal Securities Is That

Question 86

Question 86

Multiple Choice

The main advantage of municipal securities is that


A) their credit risk is usually very low.
B) the interest income earned is exempt from federal income tax and taxes in the issuing state.
C) they are the most liquid type of securities.
D) Both a and b are correct.

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