A municipal bond issue has a serial component when: a. holders of the bonds must report the serial numbers of the bonds...
A municipal bond issue has a serial component when:
a. holders of the bonds must report the serial numbers of the bonds to the Internal Revenue Service (also called registered bonds).
b. tax revenues are pledged for repayment.
c. the issue has bonds of varying terms to maturity.
d. only a single coupon rate will be paid.
Homework Answers
| Option C is the answer | |
|
When the issue has different bonds with the different terms to maturity, a municipal bond is deemed to have a serial component. Comment if you face any issues |
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A municipal bond issue has a serial component when: a. holders of the bonds must report the serial numbers of the bonds...
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