Explain the type of general obligation bond

Reference no: EM131793317

Question: How's a corporate bond compare to a municipal bond? There are two main categories of municipal bonds: general obligation bonds and revenue bonds. Generally, general obligation bonds are consider less risky than revenue bonds since the latter are project specific where as the former, depending on the type of general obligation bond, can tap into the full taxing power of potentially an entire state. Investors in high-tax brackets tend to invest in municipal bonds because the interest is typically not taxable at the federal level. Do corporate bonds face default risk?

Reference no: EM131793317

Questions Cloud

Consumption benefits and act as a hedge against inflation : There are many advantages to using credit, in general; however, there are also several disadvantages. Regarding advantages, credit allows for shopping.

How would waterloo''s reported net income have : How would Waterloo's reported net income have been different in each of these two years if the investment had been reported as a trading security

How much depreciation expense will cameron company recognize : How much depreciation expense will cameron company recognize on this piece of equipment during year 4

Discuss gaap financial reporting meet the test of integrity : This is one of many discussions which you may optionally choose for one of your responses. Does our current GAAP financial reporting meet the test of integrity

Explain the type of general obligation bond : Generally, general obligation bonds are consider less risky than revenue bonds since the latter are project specific where as the former, depending on the type.

Determine break-even level of output for each of processes : A company is considering investing in one of the production processes identified below. Determine the break-even level of output for each of the processes.

Calculate the depreciation expense : Calculate the depreciation expense using the diminishing-balance method for 2018 and 2019

Describe what role did the vision statement play in success : Describe What role did the vision statement play in the success? What research was conducted by both CEO's on the other business before the merger?

Creating the tangible products or services : Scenario: You work as an analyst for a very successful venture capitalist. Recently, your boss has divested a number of businesses and she is eager.

User Account

All Pages