You have just advance refunded $$50$ million of outstanding tax$-$exempt revenue bonds with $$40$ million of new debt, which created a gain after considering reimbursement effects of $$5$ million. What could account for this?

Question $33$ options:

Higher interest rate on the refunding issue

Positive arbitrage on the refunding issue

Lower interest rate on the refunding issue

None of these is correct You have just advance refunded $\backslash (\backslash$$ $50\backslash )$ million of outstanding tax$-$exempt revenue bonds with $\backslash (\backslash$$ $40\backslash )$ million of new debt, which created a gain after considering reimbursement effects of $\backslash (\backslash$$ $5\backslash )$ million. What could account for this?

Higher interest rate on the refunding issue

Positive arbitrage on the refunding issue

Lower interest rate on the refunding issue

None of these is correct