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Natalija [7]
4 years ago
8

Regarding municipal premium bonds, which statements are TRUE? I Municipal original issue premium bonds must be amortized II Muni

cipal original issue premium bonds may be amortized III Municipal market premium bonds must be amortized IV Municipal market premium bonds may be amortized
Business
1 answer:
stich3 [128]4 years ago
7 0

Answer:

I and III are true

Explanation:

A premium municipal bond is a security that is purchased at a price that exceeds its par value and with a coupon rate that is greater than the market interest rate. Municipal bonds are issued at premium prices to guard against taxes. In a situation where the bond pays tax exempt interest, the bond investor must amortize the bond premium

From the question, Municipal original issue premium bonds must be amortized and Municipal market premium bonds must be amortized are the correct answer options.

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