For municipal bonds, the trading in secondary markets are classified as ___________?
Correct answer: D. infrequent trading
- A. infrequent origination
- B. static trading
- C. frequent trading
- D. infrequent trading
Explanation
Municipal bonds usually trade infrequently in secondary markets because many issues are held by investors until maturity and are less liquid than major corporate or government securities. Thus, infrequent trading is the characteristic classification.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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