A government may decide to do an advance refunding of long-term debt to remove legal impairments or lower the effective interest rate.If the refunding does not pay off the old debt, but simply sets aside monies irrevocably with a trustee to pay it as it comes due, it is a(n)
A) duplicate borrowing.
B) defeasance of debt
C) transaction to only disclose in the footnotes.
D) trust to record in the nonexpendable trust fund.
Correct Answer:
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