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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.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91795190

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