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A. Option A
B. Option D
C. Option B
D. Option C
Answer: D
Bill Foley, CFA, manages an intermediate tax-exempt bond fund. Foley makes the following two comments about securities in his portfolio.
Statement 1:Revenue bonds usually pay a higher coupon rate than general obligation bonds.
Statement 2:Double barreled bonds are municipal securities that are exempt from both federal and state taxes.
Which of the following best evaluates Statement 1 and Statement 2?
A. Only Statement 2 is correct.
B. Only Statement 1 is correct.
C. Both Statements are incorrect.
Answer: B
A. Option D
B. Option E
C. Option F
D. Option B
E. Option C
F. Option A
Answer: D,E,F
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