Suppose the City of Des Moines Has a High Credit

Multiple Choice

Suppose the city of Des Moines has a high credit rating,and so when Des Moines borrows funds by selling bonds,

A) the city's high credit rating and the tax status of municipal bonds both contribute to a lower interest rate than would otherwise apply.
B) the city's high credit rating and the tax status of municipal bonds both contribute to a higher interest rate than would otherwise apply.
C) the city's high credit rating contributes to a lower interest rate than would otherwise apply,while the tax status of municipal bonds contributes to a higher interest rate than would otherwise apply.
D) the city's high credit rating contributes to a higher interest rate than would otherwise apply,while the tax status of municipal bonds contributes to a lower interest rate than would otherwise apply.