Which of the following is not correct?
A) The taxable equivalent yield is greater than the tax-exempt yield.
B) The taxable equivalent yield can be compared to the return on a taxable investment.
C) An investor can have a capital gain if she sells a municipal bond before maturity.
D) The taxable equivalent yield is calculated for municipal securities.
E) The tax-exempt yield is associated primarily with federal government securities.
Correct Answer:
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