All municipal bonds issued by the City of Arcadia after 2020 are classified as high-yield. Every high-yield municipal bond currently on the market was evaluated by an independent rating agency. No bond evaluated by an independent rating agency is exempt from the new federal disclosure requirements. However, most of the bonds held by the Global Infrastructure Trust are exempt from the new federal disclosure requirements.
Which of the following must be true on the basis of the statements above?
- Most of the bonds held by the Global Infrastructure Trust were not issued by the City of Arcadia after 2020.Answer
- BAny bond evaluated by an independent rating agency was issued by the City of Arcadia after 2020.
- CAny bond that was not issued by the City of Arcadia after 2020 is exempt from the new federal disclosure requirements.
- DNone of the bonds held by the Global Infrastructure Trust were issued by the City of Arcadia after 2020.
- EThe new federal disclosure requirements were implemented primarily to regulate high-yield municipal bonds.
Answer
Most of the bonds held by the Global Infrastructure Trust were not issued by the City of Arcadia after 2020.
The correct answer properly combines the conditional chain and the quantifier statement. The first three sentences establish that any bond issued by Arcadia after 2020 is not exempt. The logical contrapositive of this is that any exempt bond was not issued by Arcadia after 2020. Since the stimulus states that most of the Trust's bonds are exempt, those specific bonds (the majority) cannot be Arcadia bonds from after 2020.
Step-by-Step Solution
Key Concept
Chaining conditional statements, forming contrapositives, and combining them with quantifier logic (Most + All).