municipal bond yields

municipal bond yields

1. Go to www.bloomberg.com/markets/rates/index.html. You will see information on municipal bond yields for various maturities. The yields observed during the last two trading days are shown along with the percentage change in yields. The yields from a week ago and six months ago are also provided. The equivalent yield on a taxable bond for an investor with a federal marginal tax rate of 28% is shown for comparison, as the interest received on municipal bonds is exempt from federal income taxes. Why are the yields different for the various maturities?
2. Go to www.bloomberg.com/news/markets/bonds.html and write a brief summary of the first article listed under “Bonds News.” What impact on bond rates and prices does this article indicate?