Question 21 1 pts Consider a municipality that needs to raise capital to finance a long term project. It decides to issue a revenue bond. The Investment banker underwriting the issue purchases the offering from the municipality and then resells it to the public. This is known as a O firm commitment O private placement best efforts Orights offering Question 22 1 pts Under the law of one price, the value of the portfolio of STRIPS and the price of the Treasury security before stripping should be equal However, in reality they can differ because some investors are willing to pay a small premium for individual STRIPS, causing the total sales proceeds from selling the STRIPS to be greater than the fair present value of the Treasury security before stripping. Which of the following is not a reason why investors may be willing to pay a small premium for individual STRIPS? all of answer choices institutional investors may use STRIPs for cash flow timing minimize interest rate risk if held to maturity asset and liability management MacBook Air FY go 73 8884 FS + # 3 $ 4 % 5 & 7 2 6 9 8 Q W E R T T Y U A S D F G H . K