A new client inherits $25,000 and wishes to use the money to purchase an 8% municipal general obligation bond selling at an 8.45% yield. The $1 million bond issue, due in 15 years, is rated Baa. All of the following factors would result in your recommending against such a purchase EXCEPT:

A new client inherits $25,000 and wishes to use the money to purchase an 8% municipal general obligation bond selling at an 8.45% yield. The $1 million bond issue, due in 15 years, is rated Baa. All of the following factors would result in your recommending against such a purchase EXCEPT:

A new client inherits $25,000 and wishes to use the money to purchase an 8% municipal general obligation bond selling at an 8.45% yield. The $1 million bond issue, due in 15 years, is rated Baa. All of the following factors would result in your recommending against such a purchase EXCEPT:




A) the client's job is not secure.

B) the client is willing to accept a moderate amount of risk.

C) the client is in the 18% tax bracket.

D) this would be the client's only investment.



Answer: B


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