That’s the implication of this table: Where the dependent variable is the state municipal bond interest rate proxied by dividing coupon payments by outstanding state debt, for 50 states. The author’s main concern is with the credit rating variable (which shows up as an ordered dummy variable, 1=BBB-, 10=AAA). However, to me, one interesting coefficient … Continue reading Is the Sensitivity of Muni Bond Rates to 10 Year Treasury 0.04?