Suppose the city of Springfield has a high credit rating,and so when Springfield borrows funds by selling bonds,
A) the city's high credit rating and the tax status of municipal bonds both contribute to a lower interest rate than would otherwise apply.
B) the city's high credit rating and the tax status of municipal bonds both contribute to a higher interest rate than would otherwise apply.
C) the city's high credit rating contributes to a lower interest rate than would otherwise apply,while the tax status of municipal bonds contributes to a higher interest rate than would otherwise apply.
D) the city's high credit rating contributes to a higher interest rate than would otherwise apply,while the tax status of municipal bonds contributes to a lower interest rate than would otherwise apply.
Correct Answer:
Verified
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