A municipal variable rate demand bond (VRDB)
A)is a long-term security.
B)is a long-term security and has interest payments linked to the level of short-term interest rates.
C)is a long-term security, has interest payments linked to the level of short-term interest rates, and may periodically be sold back to the issuer at face value.
D)is a long-term security, has interest payments linked to the level of short-term interest rates, may periodically be sold back to the issuer at face value, and is tax-exempt.

Question

Quizplus · Accepted Answer

The Answer of A municipal variable rate demand bond (VRDB)
A)is a long-term security.
B)is a long-term security and has interest payments linked to the level of short-term interest rates.
C)is a long-term security, has interest payments linked to the level of short-term interest rates, and may periodically be sold back to the issuer at face value.
D)is a long-term security, has interest payments linked to the level of short-term interest rates, may periodically be sold back to the issuer at face value, and is tax-exempt.

A Municipal Variable Rate Demand Bond (VRDB)