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What would happen to interest rates on municipal securities, given each of the following scenarios?

a. The government increases marginal tax rates.

b. The tax exemption on municipals is eliminated.

c. Corporate profits fall severely.

d. The federal government guarantees that the interest and principal on corporate bonds will be paid.

e. A broader secondary market for government agency securities develops.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91965388

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