Zync Corporation decides that instead of simply offering a block of its debt securities for sale to the investment banker that submits the highest price, it should do business with a single (one) investment banker. In this case, the issuing costs are determined by using _____.

Question

Quizplus · Accepted Answer

With a negotiated deal, the issuing costs are determined through direct negotiation and agreement between the issuer and the investment banker. This is in contrast to a competitive bid process where the highest bidding investment banker wins the sale, or other arrangements such as trade-through or financial intermediation.

Zync Corporation Decides That Instead of Simply Offering a Block