You have just advance refunded $50 million of outstanding tax-exempt revenue bonds with $40 million of new debt, which created a gain after considering reimbursement effects of $5 million. What could account for this?
You have just advance refunded $50 million of outstanding tax-exempt
revenue bonds with $40 million of new debt, which created a gain after considering reimbursement effects of $5 million. What could account for this?
Question 7 options:
Higher interest rate on the refunding issue
Lower interest rate on the refunding issue
Positive arbitrage on the refunding issue
None of these options
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