Question
Read What's the Fed doing in response to the COVID-19 crisis? What more could it do? found at https://www.brookings.edu/research/fed-response-to-covid19/ d. College issues revenue bonds, which
Read "What's the Fed doing in response to the COVID-19 crisis? What more could it do?" found at
https://www.brookings.edu/research/fed-response-to-covid19/
d. College issues revenue bonds, which is a type of Municipal bond collateralized by revenue for a particular project. In the college's case, the Revenue bonds were issued to finance dorms, and the revenue stream generated from operations of the dorms was pledged as collateral.
i. Consider the likely impact on college's Revenue Bonds of the COVID-19 pandemIc absent Federal Reserve action. What would you expect regarding the price of NMSU's revenue bonds?
ii. Again absent Federal Reserve action, what do you think is the impact on college's ability to raise funds for campus improvements from the COVID-19 pandemic?
iii. What actions are the Fed undertaking to help support the Municipal bond market?
v. If the Fed had failed to stabilize the Municipal bond market, how might it impact your education?
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