Yields on municipal bonds are generally lower than yields on similar corporate bonds because of differences in ________.

Name: Yields on municipal bonds are generally lower than yields on similar corporate bonds because of differences in ________.
Brand: Quizplus
Rating: 5.0 (43 reviews)

Question

Quizplus · Accepted Answer

Municipal bonds are generally exempt from federal income tax and, in some cases, state and local taxes as well. This tax advantage allows municipalities to offer lower yields compared to similar corporate bonds that are fully taxable.

Yields on Municipal Bonds Are Generally Lower Than Yields on Similar