The principal advantage of purchasing a variable rate municipal note is the fact that the: A interest rate can be expected to remain fairly stable B market value can be expected to remain fairly stable C marketability risk can be expected to be lower D credit risk can be expected to be lower Review

B market value can be expected to remain fairly stable

Explanation:

Given that variable-rate municipal note is a long-term municipal bond that in which investors are offered to possess or buy using the money market funds.

For investors, there are a lot of advantages in purchasing variable rate municipal notes, some of which are:

1. market value can be expected to remain fairly stable

2. It is not taxable from federal tax

3. It has a low correlation with stocks and bonds

4. It has credit enhancement to mitigate the risk

Hence, the correct answer is that "market value can be expected to remain fairly stable"

answer; ///(c) i believe its it ignores cash flows following the payback period;

answer; ( prices are sticky);