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Bonds issued by cities, states and their agencies are called:
AMutual bonds
BMarginal bonds
CMonthly bonds
DMunicipal bonds
Answer & Solution
Correct answer: D. Municipal bonds
1. They typically return a little more than Treasury bills.
2. They are also a little riskier.
3. They are municipal bonds.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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