With respect to private placements of bonds,which of the following is correct?
I. Issuers of privately placed bonds tend to be less well known than public bond issuers.
II. Interest rates on privately placed debt tend to be higher than for similar public issues.
III. Purchasers of privately placed debt have assets of at least $1 million.
IV. Once bonds have been privately placed,the original buyers must hold the bonds until maturity.

Question

Quizplus · Accepted Answer

I, II, and III are correct. Issuers of privately placed bonds are often less well-known, leading to higher interest rates due to increased risk. Purchasers typically have significant assets, but there's no requirement for them to hold the bonds until maturity.

With Respect to Private Placements of Bonds,which of the Following