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8 August, 21:06

Explain why municipal bonds are generally more safe than corporate bonds.

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  1. 9 August, 00:37
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    Less risky, tax-free interest payments

    Explanation:

    There are various differences between municipal bond and corporate bonds in terms of risk, and return, and tax payments. Municipal bonds are preferred over corporate bonds because they are generally safer. Municipal bonds generate tax free income with less risk involve, whereas corporate bonds are riskier, and provide higher return. Risk adverse investor always chose to invest in municipal bonds.
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