The underwriter guarantees the issuing corporation a specific price for the entire bond issue and sells the bonds to the investing public at a higher price.

Name: The underwriter guarantees the issuing corporation a specific price for the entire bond issue and sells the bonds to the investing public at a higher price.
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Question

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This is correct. The underwriter agrees to purchase the entire bond issue from the issuer at a set price and then sells the bonds to investors at a higher price to make a profit.

The Underwriter Guarantees the Issuing Corporation a Specific Price for the Entire