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Underwriters for a Domestic Bond Issue Will Commit Their Own

Question 86

Multiple Choice

Underwriters for a domestic bond issue will commit their own capital to buy the issue from the borrower at a discount from the issue price.The discount,or underwriting spread,is typically


A) in the 1 to 1.5 percent range.
B) in the 2 to 2.5 percent range.
C) in the 3 to 3.5 percent range.
D) in the 4 to 4.5 percent range.

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