Which of the following is an advantage of a public bond issue over private placement?

Question

Quizplus · Accepted Answer

Public bond issues are freely tradable on the bond market, while private placements are not. This means that public bond issues offer more liquidity and potentially greater access to a wider pool of investors, which can help to drive down interest rates and/or increase demand for the bonds. Although a public bond issue may be more costly and may require registration with the SEC, the advantages of liquidity and broad market access may outweigh these drawbacks. Tailoring a bond issue to a particular situation is possible through both public and private bond issuances, so it is not a unique advantage of one over the other.

Which of the Following Is an Advantage of a Public