The in whole call is the call covenant that must be taken into account when determining the dollar price of a municipal premium bond listed on a yield basis.
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What is Municipal Securities Rulemaking Board (MSRB)?</h3>
When conducting municipal securities transactions and giving advice to investors, state and local governments, and banks, securities companies, banks, and municipal advisors must abide by rules established by the Municipal Securities Rulemaking Board (MSRB).
A municipal bond, or "muni," is a type of bond issued by local or state governments, as well as the authorities and special districts they establish. Holders of municipal bonds are frequently, but not always, free from paying federal and state income taxes on the interest they receive.
A fixed-income security's price is quoted using the yield basis approach, which converts it to a yield percentage. Bonds with various features can be easily compared using the yield basis. It is determined by dividing the bond purchase price by the annual coupon amount.
The in whole call is the call covenant that must be taken into account when determining the dollar price of a municipal premium bond listed on a yield basis. This type of callable bond requires that the entire issue be called at once.
Hence, In whole call covenants must be considered when computing the dollar price of a municipal bond quoted on a yield basis.
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