An insured municipal bond bears lower cost to borrower

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Reference no: EM131893570

An insured municipal bond bears a lower cost to the borrower than does an equivalent uninsured bond because?

A) the insurer pledges its resources to payment of debt service, if necessary.

B) only highest rated (AAA) bonds can obtain insurance.

C) term structures of interest rates vary.

Reference no: EM131893570

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