Would you expect the interest rates on the bonds

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Reference no: EM131305413

In April 2009, as part of the stimulus package intended to fight the recession of 2007-2009, Congress authorized "Build America Bonds," which states and cities could issue to build roads, bridges, and schools.

Unlike with regular municipal bonds, however, the coupons on Build American Bonds are taxable.

Would you expect the interest rates on these bonds to be higher or lower than the interest rates on comparable municipal bonds? Briefly explain.

Reference no: EM131305413

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