________, additional bonds of a previously outstanding bond issue are auctioned where the government announces periodically that it is adding this new supply.

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In a tap system, additional bonds are auctioned in a flexible manner, according to market demand, which allows the government to add supply periodically without having to create a new issue. In the regular calendar auction systems (either Dutch-style or minimum-price offering), the government sells a predetermined amount of bonds at specific intervals, without the flexibility to adjust the supply in response to market conditions. The ad hoc auction system refers to a one-time auction for a specific purpose, and is not typically used for ongoing debt management.

________, Additional Bonds of a Previously Outstanding Bond Issue Are