Which of the following are correct. Check all that apply. Check All That Apply Suppose a taxable bond is currently yielding 10% and at the same time a municipal bond is yielding 8%. Then, the municipal bond is more attractive to an investor with 35% tax bracket. The term structure of interest rates tells us what discount interest rate are on default-free, pure discount bonds of all maturities. When short-term rates are higher than long-term rates, we say it is downward sloping. The difference between the bid and ask prices is called current yield. Sunshine Inc. has preferred stock outstanding that sells for $100 per share. If the required return is 2% percent, the annual dividend is $1