Question: Indicate if each factor will lead to a higher or lower yield. A. Lower B. Higher 1. A bond being tax-exempt (instead of being taxable)

Indicate if each factor will lead to a higher or lower yield.
  1. A. Lower
  2. B. Higher
1. A bond being tax-exempt (instead of being taxable)
2. A bond have high default risk (compared to a bond with lower default risk)
3. A bond with a call provision (compared to a bond without a call provision)
4. A bond with a conversion option (compared to a bond that is not convertible)
5. A bond that is very liquid (compared to a bond that is illiquid)

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