A municipality has a g.o. bond debt limit of $500 million. it has $300 million of g.o. debt outstanding. it now wishes to issue another $100 million of g.o. bonds. the new debt issue is known as a(n)?

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A municipality has a G.O. bond debt limit of $500 million. it has $300 million of G.O. debt outstanding. it now wishes to issue another $100 million of  G.O.  bonds. the new debt issue is known as a parity bond.

Parity bonds are collections of debt instruments that each have the same seniority, payment, and/or rights. When there is a default or bankruptcy, parity bonds are most frequently used.

When referring to equality in trading, the term parity can be used in a variety of contexts. The forex market is where parity is most frequently used to denote the point at which two currencies are valued equally. The exchange rate between the two currencies would then be exactly one.

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