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Variable-Rate Demand Obligations Frequently Carry a Provision Which Allows the Issuer

Question 42

Multiple Choice

Variable-rate demand obligations frequently carry a provision which allows the issuer to do which one of the following?


A) limit the amount of upward adjustment to a maximum increase of 2 percent
B) convert the issue from GO bonds to revenue bonds
C) void the put provision if the coupon rate increases
D) eliminate the call premium if the entire issue is called
E) convert the entire issue into a fixed-rate issue

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