Private placement of corporate bonds
A) has increased in use as new bond issues increased.
B) exceed 70% of all long-term corporate debt outstanding.
C) are more expensive to issue than publicly placed bonds.
D) have lower interest rates than mortgage-backed securities.

Question

Quizplus · Accepted Answer

Private placement of corporate bonds has indeed increased in use as new bond issues have increased. This is because private placements can often be executed more quickly and with less regulatory paperwork than public offerings, making them an attractive option for companies looking to raise capital efficiently.

Private Placement of Corporate Bonds