How do investors gauge the default risk of a bond issue

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Reference no: EM131279725

1. How do investors gauge the default risk of a bond issue?

2. Why is the maturity of an amortizing bond not a useful measure?

3. Explain why you agree or disagree with the following statements:

a. "All municipal bonds are exempt from federal income taxes."

b. "All municipal bonds are exempt from state and local taxes."

Reference no: EM131279725

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