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goji.go goji.go
wrote...
Posts: 5977
9 years ago
A government may have arbitrage when:
      a.   it finances capital projects through federal grants
      b.   it borrows money at lower tax-exempt rate, but invests it at a higher rate
      c.   it pays a higher rate on its tax-exempt debt than the rate that it receives from its investments
      d.   its debt pays a lower rate of interest than federally issued debt of the same credit quality
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3 Replies
Diesel
Replies
Answer accepted by topic starter
f_zah1f_zah1
wrote...
Top Poster
Posts: 10774
9 years ago
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goji.go Author
wrote...
9 years ago
Thanks so much f_zah1.

You were correct Smiling Face with Open Mouth
Diesel
wrote...
9 years ago
You're very welcome!
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