Lower interest rate than similar-risk corporate bond

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Question

Suppose you are a farmer Why might an investor prefer to buy a municipal bond even though it pays a lower interest rate than a similar-risk corporate bond? Give an example of someone who may not be able to take advantage of the benefit(s) mentioned in the first part of your answer.who primarily grows soybeans. You would like to lock in the price you can sell your produce for in six months (when it is ready for harvest and sale) and you would like to avoid the risk that the party on the other side of the contract refusing to honor the agreed upon price if the market price falls below what you agree to today. Should you use a forward or futures contract? Why? When might you prefer the other type of contract?

Reference no: EM133578600

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