Question: 1) How does time preferences for consumption affect interest rate? 2) (True/False. Explain) Investors in higher tax brackets often choose municipal bonds (muni) over higher

1) How does time preferences for consumption affect interest rate?

2) (True/False. Explain) Investors in higher tax brackets often choose municipal bonds (muni) over higher yield bonds of similar risk classes.

3) (True/False. Explain) A company reporting higher FCFs will always be valued higher than a company reporting lower FCFs

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