What effect would reducing income tax rates have on the interest rates of municipal bonds?

What effect would reducing income tax rates have on the interest rates of municipal bonds? O A. Interest rates would rise because the reduction in income tax rates would make the tax-exempt privilege for municipal bonds less valuable and reduce the demand for municipal bonds. OB. Interest rates would fall because Treasury Securities are now less valuable and more people will want to hold municipal bonds. OC. Interest rates would rise because Treasury securities are now less valuable and more people will want to hold municipal bonds OD. Interest rates would fall because the reduction in income tax rates would make the tax-exempt privilege for municipal bonds less valuable and reduce the demand for municipal bonds. Would interest rates of Treasury securities be affected by the tax rate change? O A. Yes, because the increase in interest rates would increase the desire to hold more municipal bonds and less Treasury securities. OB. No, there would be no impact on the market for Treasury securities. OC. Yes, because municipal bonds are less risky than Treasury securities, the demand for Treasury securities will decrease OD. Yes, because the reduction in the tax-exempt privilege in municipal bonds would raise the relative value of Treasury securities, making Treasury securities more desirable What influence would lowering income tax costs have actually really when you look at the interest rates of municipal bonds? O A. interest rates would boost because the reduction in income tax costs would end in the tax-exempt privilege for municipal bonds less important and reduce the attention in municipal bonds. OB. Interest levels would fall because Treasury Securities are in fact less important and even more people may decide to hold municipal bonds. OC. Interest levels would boost because Treasury securities are in fact less important and even more people may decide to hold municipal bonds OD. Interest levels would fall because the reduction in income tax costs would end in the tax-exempt privilege for municipal bonds less important and reduce the attention in municipal bonds. Would interest rates of Treasury securities be suffering from the taxation cost adjustment? O A. sure, because the increase in interest rates would enhance the like to hold much more municipal bonds not as Treasury securities. OB. No, there’s no impact the market for Treasury securities. OC. Indeed, because municipal bonds tend to be less risky than Treasury securities, the attention in Treasury securities will reduce OD. Indeed, because the reduction in the tax-exempt privilege in municipal bonds would improve the basic worth of Treasury securities, making Treasury securities much more desirable
desirable.

Ans) your best option is d) Yes, because the reduction in the​
worth of Treasury​ securities, making Treasury securities much more

tax-exempt privilege in municipal bonds would improve the basic
Ans) your best option is a) interest rates would boost because
the reduction in income tax costs will make the​ tax-exempt
for municipal bonds.

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