Respuesta :
When it comes to municipal bonds, defeasance refers to methods of making an outstanding bond issue void, both legally and financially.
What does defease a loan mean?
Defeasance is a contractual provision that voids a bond or loan on a balance sheet when the borrower sets aside enough cash or bonds to service the debt.
When it comes to municipal bonds, defeasance refers to methods of making an outstanding bond issue void, both legally and financially. Although a defeasance is typically the result of a refunding transaction, it can also be accomplished with cash rather than the issuance of bonds.
- Municipalities with a high credit rating reduce debt.
- Bondholders can get their hands on US Governments, Agencies, and occasionally (rarely) bank certificates of deposit.
Therefore, the correct answer is option c municipal securities.
To learn more about municipal securities, refer
https://brainly.com/question/17395693
#SPJ4
