Traverse County needs a new county government building that would cost $10 million. The politicians feel that voters will not app a municipal bond issue to fund the building since it would increase taxes. They opt to have a state bank issue $10 million of taxexempt securities to pay for the building construction. The county then will make yearly lease payments (of principal and interest) repay the obligation. Unlike conventional municipal tonds, the lease payments are not binding obligations on the county and, therefore, require no voter approval. Required: 1. Do you think the actions of the politicians and the bankers in this situation are ethical? 2. In terms of risk, how do the tax-exempt securities used to pay for the building compare to a conventional municipal bond issued Traverse County