What is the muni-treasury yield ratio for municipal bond

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How does a conversion provision on a debt obligation provide an option to the investor? If the yield on a Treasury security is 3% and that of a similar-maturity municipal bond is 2.5%, what is the muni-Treasury yield ratio for this municipal bond? Explain the relation between a tax-exempt yield and a taxable yield for bonds with similar maturity and features.

Reference no: EM131318459

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