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Why would a municipal bond issuer want to purchase third-party insurance on the bond payments? A. Bond insurance ensures payment to bondholders in the event
Why would a municipal bond issuer want to purchase third-party insurance on the bond payments?
A. Bond insurance ensures payment to bondholders in the event that the issuer defaults on a payment.
B. The bond issued will have the credit rating of the insurance company. This helps improve the credit ratings of bond issuers and lowers interest rates on bonds backed by insurance substantially.
C. Both A & B are correct
D. Only A is correct
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