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41. Municipal general obligation bonds are ____. Municipal revenue bonds are ___

ID: 2710877 • Letter: 4

Question

41. Municipal general obligation bonds are ____. Municipal revenue bonds are ____.

a.

supported by the municipal government's ability to tax; supported by the municipal government's ability to tax

b.

supported by the municipal government's ability to tax; supported by revenue generated from the project

c.

always subject to federal taxes; always exempt from state and local taxes

d.

typically zero-coupon bonds; typically zero-coupon bonds

       

          

   42.   Corporate bonds that receive a ____ rating from credit rating agencies are normally placed at ____ yields.

a.

higher; lower

b.

lower; lower

c.

higher; higher

d.

none of the above

   43.   Some bonds are "stripped," which means that

a.

they have defaulted.

b.

the call provision has been eliminated.

c.

they are transferred into principal-only and interest-only securities.

d.

their maturities have been reduced.

   44.   Leveraged buyouts are commonly financed by the issuance of:

a.

money market securities.

b.

Treasury bonds.

c.

corporate bonds.

d.

municipal bonds.

       

       

  

a.

supported by the municipal government's ability to tax; supported by the municipal government's ability to tax

b.

supported by the municipal government's ability to tax; supported by revenue generated from the project

c.

always subject to federal taxes; always exempt from state and local taxes

d.

typically zero-coupon bonds; typically zero-coupon bonds

Explanation / Answer

b.

Treasury bonds.

b.

Treasury bonds.

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