The size of the bond offering and the cost of issuing the bond (as a percentage of the amount raised) are inversely related.

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Quizplus · Accepted Answer

The size of the bond offering and the cost of issuing the bond are typically inversely related. This means that as the size of the bond offering increases, the cost of issuing the bond (as a percentage of the amount raised) decreases. This is because some of the fixed costs associated with issuing a bond, such as legal fees and underwriting fees, are spread out over a larger amount of capital. Conversely, if the size of the bond offering is smaller, these fixed costs are spread out over a smaller amount of capital, resulting in a higher percentage cost of issuing the bond.

The Size of the Bond Offering and the Cost of Issuing