The tax-exempt status of municipal bonds

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Reference no: EM131070825

Everything else held constant, if the tax-exempt status of municipal bonds were eliminated, then

A) the interest rates on municipal bonds would still be less than the interest rate on Treasury bonds.

B) the interest rate on municipal bonds would equal the rate on Treasury bonds.

C) the interest rate on municipal bonds would exceed the rate on Treasury bonds.

D) the interest rates on municipal, Treasury, and corporate bonds would all increase.

Reference no: EM131070825

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