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In comparison to Treasury bonds, municipal bonds generally provide investors with a credit risk premium for having higher credit risk. All of these are true.

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In comparison to Treasury bonds, municipal bonds generally provide investors with a credit risk premium for having higher credit risk. All of these are true. a lower return on investment. less certainty of payment at maturity. a liquidity premium for being less liquid. QUESTION 16 A call provision might be beneficial for the issuer of a bond if secondary market trading decreases. interest rates increase after issuance. interest rates decrease after issuance. the credit rating of the issuer decreases dramatically. the issuer declares bankruptcy. QUESTION 17 of the underlying bond. The presence of bond collateral directly reduces the credit risk coupon frequency market risk debenture liquidity risk

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