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Author Question: While tax-exempt bonds are not subject to income tax under the Internal Revenue Code, they are ... (Read 352 times)

Capo

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Question 1

Given a choice between a fully-taxable investment and a tax-favored investment, investors will prefer the tax-favored investment, assuming the two investments are equally risky.
◦ true
◦ false

Question 2

While tax-exempt bonds are not subject to income tax under the Internal Revenue Code, they are subject to implicit taxes caused by increased demand driving up the price.
◦ true
◦ false


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Marked as best answer by Capo on Sep 13, 2020

xMRAZ

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Capo

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Reply 2 on: Sep 13, 2020
YES! Correct, THANKS for helping me on my review


xoxo123

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Reply 3 on: Yesterday
:D TYSM

 

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