Asked by Aubrey Velele on May 27, 2024

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If federal tax rates increased, what would happen to the interest rate on municipal bonds?

Municipal Bonds

Debt securities issued by states, cities, counties, and other governmental entities to finance public projects, often offering tax-free interest payments to investors.

Federal Tax Rates

The percentages at which income, corporate profits, and other types of earnings are taxed by the federal government.

Interest Rate

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.

  • Understand the factors affecting bond interest rates and risks.
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AJ
Aadesh JalotaMay 31, 2024
Final Answer :
the interest rate would rise