Original issue deep discount bonds have decreased in popularity over the last several years due to:
A) changes in tax laws
B) issuance by brokerage firms of higher risk substitutes
C) increased interest in equity securities
D) None of these are correct

Question

Quizplus · Accepted Answer

The changes in tax laws, such as the Tax Reform Act of 1986, have eliminated or reduced the tax advantages of deep discount bonds, leading to decreased popularity.

Original Issue Deep Discount Bonds Have Decreased in Popularity Over