You have probably heard that you can invest in municipal bonds, where the interest earned on...
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You have probably heard that you can invest in municipal bonds, where the interest earned on them is tax-free. municipalities need funds to support the purchase of their capital assets, they issue tax-free bonds as an incentive for taxpayers to invest in them. This is a win-win for all parties concerned. For this unit, do the following: Explain a bond issue that your local government has issued to purchase a specific capital asset • Describe how a sinking fund can be used to pay back the principle of the bond issue • raid about the differences between term bonds a You have probably heard that you can invest in municipal bonds, where the interest earned on them is tax-free. municipalities need funds to support the purchase of their capital assets, they issue tax-free bonds as an incentive for taxpayers to invest in them. This is a win-win for all parties concerned. For this unit, do the following: Explain a bond issue that your local government has issued to purchase a specific capital asset • Describe how a sinking fund can be used to pay back the principle of the bond issue • raid about the differences between term bonds a
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Example Suppose your local government lets call it City X wants to build a new public school To finance the construction of the school City X decides ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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