About after-tax return on their investment

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Municipal bonds are usually tax-free. Since investor’s car about after-tax return on their investment, these bonds have higher yield than bonds whose interest rate payments are taxable. True or false? Explain

Investors demand compensation for default risk in the form of risk premium. The higher the default risk, the higher the bond rating, the lower the risk premium. True or false? Explain

Reference no: EM13932955

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