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Suppose the price of a tax-free municipal bond and the price of an identical taxable bond are equal What will happen in the bond markot

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Suppose the price of a tax-free municipal bond and the price of an identical taxable bond are equal What will happen in the bond markot for these bonds? the yiold of the tax-tree bond will decrease all these answers are correct the ulimate adjustrients will lead to the bonds having tax-equivalent yoids the price of the tax-free bond will incroase

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