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 lower risk substitutes
C)increased interest in equity securities
D)changes in tax laws and issuance by brokerage firms of lower risk substitutes

Question

Quizplus · Accepted Answer

The decrease in popularity of original issue deep discount bonds can be attributed to two factors - changes in tax laws and issuance by brokerage firms of lower risk substitutes. Changes in tax laws have reduced the tax benefits of owning such bonds, while brokerage firms have issued alternative investment options with a lower risk profile, attracting investors away from deep discount bonds.

Original Issue Deep Discount Bonds Have Decreased in Popularity Over