Larger bond issues can lower "liquidity risk," or the possibility that an investor will not be able to sell a bond quickly and easily.

Question

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Larger bond issues typically have a larger pool of potential buyers, making it easier for investors to find a buyer for their bonds when they need to sell. This increased liquidity can reduce the risk of not being able to sell the bond quickly and easily.

Larger Bond Issues Can Lower "Liquidity Risk," or the Possibility