Taxable securities must offer a _____ before-tax yield than tax-exempt securities. Tax exempt securities are typically ____ attractive to individuals in higher tax brackets.

A) higher; less

B) higher; more

C) lower; less

D) lower; more

When a credit rating agency assigns a rating to a bond issue, they are paid by _____.

A) the investors of the bonds that the agency rates

B) the issuers of the bonds that the agency rates

C) the taxpayers, because the rating agencies are government agencies

D) the New York Stock Exchange or the over-the-counter market where the bonds are listed