Do you think the actions of the politicians are ethical

Reference no: EM132082235

Question: Traverse County needs a new county government building that would cost $10 million. The politicians feel that voters will not approve a municipal bond issue to fund the building since it would increase taxes. They opt to have a state bank issue $10 million of tax-exempt securities to pay for the building construction. The county then will make yearly lease payments (of principal and interest) to repay the obligation. Unlike conventional municipal bonds, the lease payments are not binding obligations on the county and, therefore, require no voter approval.

1. Do you think the actions of the politicians and the bankers in this situation are ethical?

2. How do the tax-exempt securities used to pay for the building compare in risk to a conventional municipal bond issued by Traverse County

Reference no: EM132082235

Questions Cloud

Major categories of intermolecular forces : What are the three major categories of intermolecular forces?

What is the approximate real rate of interest : If Treasury bills are currently paying 5.1 percent and the inflation rate is 2.2 percent, what is the approximate real rate of interest?

What is the volume of the great pyramid in cubic yards : The Great Pyramid outside Cairo, Egypt, has a square base measuring 756 feet on a side and a height of 480 feet.

Would you recommend that alison keep operating : BUS302 Entrepreneurship - king's own institute - Would you recommend that Alison keep operating as she is, or should she expand via franchising?

Do you think the actions of the politicians are ethical : Traverse County needs a new county government building that would cost $10 million. The politicians feel that voters will not approve a municipal bond issue.

What is the expected value of the amount : What is the expected value of the amount you will win from each turn? Would it be a good idea to play this game only one time?

Bases for positioning and promotion of these products : What are some "innate" and "acquired" (psychological) needs that would be useful bases for positioning and promotion of these products?

Construct a frequency distribution using 5 classes : Construct a frequency distribution using 5 classes. Which table below shows the relative frequency of each class?

Perform a comparison of the costs of given two options : Transport Pros LLC requires a new concrete compression machine to conduct research that will improve our roads and walkways. They have narrowed their search.

User Account

All Pages