What effect, would reducing income tax rates have on the interest rates of municipal bonds?

Would interest rates of Treasury securities be affected, and if so how?

By | 2013-08-28T03:18:59+00:00 August 28th, 2013|Mortgages Home Loans Interest Rate|1 Comment

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  1. SDD August 28, 2013 at 3:53 AM - Reply

    Municipals are priced to a large extent based on taxable-equivalent yield. So if tax rates declined, prices of munis would fall also (falling price=higher interest rate).
    Treasuries are already subject to federal tax.

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