The type of bonds with the thinnest secondary market is:

Question

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Municipal bonds have traditionally had a thin secondary market due to their unique characteristics such as irregular coupon payments, diverse credit quality, and limited issuances. This makes it more difficult for investors to buy or sell them quickly, unlike Treasury or corporate bonds which offer more liquidity in the market. As a result, investors may have to accept a higher discount or premium when trading municipal bonds.

The Type of Bonds with the Thinnest Secondary Market Is