This study analyzes the differences in interest rates of GO and RV bonds. Empirical analyses show that RV bonds cost an average of 74 basis points more than the GO bonds. We hypothesize that differences in information asymmetry influence these yield differences. We use the issue spread as a...

Using a system of equations approach, this paper empirically tests the impact of credit quality, asset maturity, and other issuer and issue characteristics on the maturity of municipal bonds. We find that under conditions of lower information asymmetry that prevails in the municipal sector,...