Which of the following statements regarding a municipal variable rate demand obligation are TRUE?
Interest payments are tied to the movements of another specified interest rate.
Interest payments are tied to the movements of an underlying stock or index.
the coupon rate stays the same for the life of the demand obligation and the price fluctuates.
the coupon rate of the bond changes and the price remains stable.
A) II and IV.
B) I and IV.
C) I and III.
D) II and III.`
Answer: B) I and IV.