From the Viewpoint of the Borrower, an Advantage of the Issuance

question 300

Multiple Choice

From the viewpoint of the borrower, an advantage of the issuance of private debt over the issuance of public debt is ______________.

• A) That public debt is likely to have fewer restrictive covenants.
• B) Public debt avoids the cost of OSC registration.
• C) Private debt typically has lower distribution costs.
• D) That it is easier for issuers and security holders to negotiate, in the event of default, in the case of public debt than it is with private debt.
• E) That the interest rate on privately placed debt is usually higher than that on public debt.

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Definitions:

Malformations

Structural deformities or imperfections in the body, often present from birth, that can affect various parts of the body.

Utero

The term refers to the uterus, indicating something related to or taking place within the uterus.

Tobacco

A plant and its product, primarily known for being smoked or chewed, containing the stimulant nicotine and associated with health risks such as cancer and heart disease.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby and removing waste products from the baby's blood.