contestada

Which of the following is correct regarding bond private placements?

I. Interest rates on privately placed debt tend to be higher than for similar public issues.
II. Purchasers of privately placed debt have assets of at least $100 million.
III. Once bonds have been privately placed, the original buyers must hold the bonds until maturity.

A. I only
B. II only
C. I and II only
D. II and III only
E. I, II, and III

Respuesta :

Answer:

C. I and II only

Explanation:

Privately placed debt are costly because it can not take the benefit of free market where interest is low. Its approach to market is confined to limited no of buyers.

Once bonds have been privately placed, the original buyers do not need to  hold the bonds until maturity. In many cases seller buy them back from the purchasers after some time.

Otras preguntas