EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 9780134202778
Author: DeMarzo
Publisher: PEARSON CUSTOM PUB.(CONSIGNMENT)
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Chapter 24, Problem 9P
Summary Introduction

To discuss: The distinguishing feature of how municipal bonds are taxed.

Introduction: Municipal bond is a debt security, which is issued by the municipality, state or country to finance its capital expenditure. Municipal bond is structured in a different way for offering various benefits, risk, and tax exemption.

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What are the special tax features of (a) Treasury securities, (b) agency issues, and (c) municipal bonds?
What is the difference in the tax treatment of interest anddividends paid by a corporation? Does this factor favor debt orequity financing?
Why might the general obligation bonds of a state yield a return different from revenue bonds issued by the same state?
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Bonds Explained for Beginners | Bond Types 101; Author: TommyBryson;https://www.youtube.com/watch?v=yuKmHTgqZ5o;License: Standard Youtube License