If a bond has a favorable tax treatment, its required interest rate (all else equal)
A) will be higher.
B) will not be affected.
C) will be lower.
D) all of the above could happen
Answer: C) will be lower.
If a bond has a favorable tax treatment, its required interest rate (all else equal)
A) will be higher.
B) will not be affected.
C) will be lower.
D) all of the above could happen
Answer: C) will be lower.