Municipal tax-backed bond and municipal revenue bond, Operation Management

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Municipal tax-backed bond and municipal revenue bond

Assignment:

Q1. What is the difference between a municipal tax-backed bond and a municipal revenue bond?

Q2. a. Why is the cash flow of a residential mortgage loan unknown?
b. In what sense has the investor in a residential mortgage loan granted the borrower (homeowner) a loan similar to a callable bond?

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

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