Rating for city of indianapolis debt

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Reference no: EM131321453

In March 1982, Moody s lowered its rating for City of Indianapolis debt from Aaa to Aa. Which of the following would result from that change?

The interest that Indianapolis has to pay on debt issued before the rating change will increase.

The interest rate that Indianapolis can expect to pay on new debt issues will rise.

The interest paid by Indianapolis will no longer be excluded from federal income taxes.

The new speculative rating means that banks must clear their investment portfolios of this new debt.

Reference no: EM131321453

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