According to a New York Times article: With yields on many municipal bonds extremely low even
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According to a New York Times article: “With yields on many municipal bonds extremely low … even a small increase in their price, which would cause the yield to go down, would cause a loss of principal.”
a. What does the article mean by “loss of principal”?
b. Do you agree with the article’s analysis? Briefly explain.
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Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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