Question
The City of Atlanta offers bonds that pay interest of 5%. Equivalent risk and maturity corporate bonds pay 7.1%. The 2.1% difference is referred to
The City of Atlanta offers bonds that pay interest of 5%. Equivalent risk and maturity corporate bonds pay 7.1%. The 2.1% difference is referred to as:
Question options:
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| Proportional difference |
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| Explicit tax |
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| Implicit tax |
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| Inequitable system |
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Financial Accounting And Reporting
Authors: Mr Barry Elliott, Jamie Elliott
16th Edition
027377817X, 978-0273778172
