The higher the tax bracket you are in, the more attractive the purchase of municipal bonds becomes.
Answer the following statement true (T) or false (F)
True
Rationale: The yield attractiveness of municipal bonds varies with an investor’s income level. The higher the individual’s tax bracket, the more attractive municipal bonds become. See 12-3: Investing in Bonds.
You might also like to view...
Which of the following is true of single-segment pricing strategy?
A) A single-segment pricing strategy is most likely to be employed during the decline stage of the product life-cycle. B) A single-segment pricing strategy is a cost-based pricing strategy rather than a value-based one. C) The company does not base the price of a product on the savings that customers realize over the life of the product. D) The main goal of single-segment pricing is to lower the cost to potential customers in order to attract their purchase volume. E) A single-segment pricing strategy overlooks both competitor's offerings and price sensitivity.
How is the empirical duration of a corporate bond estimated?
What will be an ideal response?
Which of the following cultural values can affect employee participation in decision making?
a. collectivism b. tolerance for ambiguity c. ascription d. time orientation
n applicant should not ask questions during the interview; only the interviewer should be asking questions
a. true b. false