The size of the loan and its issuance costs (as a percentage of the amount borrowed) are

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The size of the loan and its issuance costs are inversely related. This means that as the size of the loan increases, the issuance costs decrease as a percentage of the amount borrowed. This is because lenders typically charge a higher percentage on smaller loans to cover their fixed costs and risk. As the loan size increases, the fixed costs become a smaller percentage of the total amount borrowed, leading to a lower percentage charge for issuance costs.

The Size of the Loan and Its Issuance Costs (As