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Municipal bonds have all of the following characteristics EXCEPT ________. a. they are issued by state and local governments b. they have no default risk
- Municipal bonds have all of the following characteristics EXCEPT ________.
a. | they are issued by state and local governments |
b. | they have no default risk |
c. | interest received is not subject to federal income tax |
d. | they tend to carry lower interest rates than either Treasury or corporate bonds |
- Mikhail purchased a corporate security that pays a fixed amount of interest each year and matures in ten years. The security is backed only by the financial reputation of the issuer. Mikhail purchased a ________.
a. | debenture |
b. | mortgage bond |
c. | preferred stock |
d. | municipal bond |
- Which type of security offers the highest potential for growth in capital?
a. | Common stocks |
b. | Preferred stocks |
c. | Bonds |
d. | Money market instruments |
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