With respect to private placements of bonds,which of the following is correct?
I. Issuers of privately placed bonds tend to be less well known than public bond issues.
II. Interest rates on privately placed debt tend to be higher than for similar public issues.
III. Purchasers of privately placed debt have assets of at least $100 million.
IV. Once bonds have been privately placed,the original buyers must hold the bonds until maturity.

Question

Quizplus · Accepted Answer

Issuers of privately placed bonds are often less well-known, and interest rates tend to be higher due to higher risk and less liquidity. Purchasers are typically institutional investors with significant assets, but the bonds can be sold in secondary markets, so they don't have to be held until maturity.

With Respect to Private Placements of Bonds,which of the Following