A municipal bond underwriter performs what function?
A) Purchases bonds from the municipal issuer for sale to investors.
B) Evaluates projects proposed for city expenditures.
C) Guarantees that municipal borrowers make principal or interest payments on schedule.
D) None of the above.

Question

Quizplus · Accepted Answer

A municipal bond underwriter purchases bonds from the municipal issuer (usually a state or city) at a negotiated price and then sells them to investors. They act as intermediaries between issuers and investors, helping to facilitate the borrowing process for municipalities. Underwriters also help to market the bonds and determine their interest rates.

A Municipal Bond Underwriter Performs What Function