If a municipality has funds available to make a partial call of an issue of outstanding serial bonds, which bonds should be called first?
A)the shortest maturity
B)the maturity with the largest number of bonds
C)the longest maturity
D)the maturity bearing the lowest interest rate

Question

Quizplus · Accepted Answer

the longest maturity. These bonds are called first because the municipality will save the interest costs for the longest period of time.

If a Municipality Has Funds Available to Make a Partial