INVESTMENTS (LOOSELEAF) W/CONNECT
INVESTMENTS (LOOSELEAF) W/CONNECT
11th Edition
ISBN: 9781260465945
Author: Bodie
Publisher: MCG
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Chapter 2, Problem 6PS
Summary Introduction

To examine: The reason for high-tax-bracket investors to be more inclined to invest in municipal bonds than are low-bracket investors.

Introduction:

Municipal bonds are the bonds which are tax-exempt and are issued by the state and local governments.

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Why are high-tax-bracket investors more inclined to invest in municipal bonds than low-bracket investors?
What are municipal bonds? What characteristics makes them especially attractive to high-income investors?
Investors with high tax rates tend to prefer municipal bonds.  Select one: True False
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