Answer:
I. Indenture covenants on the municipal bond that are restrictive
IV. A trend of decreasing interest rates
Explanation:
Advance refunding of a municipal bond issue is usually carried out with the aim of removing a restrictive covenant, to provide the issuer with the ability to issue out more bonds. Another reason for advance refunding is also to reduce the costs of interest at the times when there is a decline in the interest rates.
