Which one of the following statements is true in regards to municipal bond insurance?
A) The insurance premium is paid by the bondholders.
B) The insurance can be cancelled with 30 days notice to the bond issuer.
C) The financial strength of the bond issuer can affect the bond's credit rating.
D) Insured bonds tend to sell at lower prices than uninsured bonds.
E) To date, bond insurers have not had to pay any payments for bond defaults.
Correct Answer:
Verified
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