Underwriters for an international bond issue will commit their own capital to buy the issue from the borrower at a discount from the issue price.The discount,or underwriting spread,is typically

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The underwriting spread for an international bond issue is typically in the 2 to 2.5 percent range. This means that the underwriters commit their own capital to buy the bonds from the borrower at a discount of 2-2.5% from the issue price. This spread covers the underwriters' expenses and compensates them for the risk they bear in buying the bonds and reselling them to investors.

Underwriters for an International Bond Issue Will Commit Their Own