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

question 53

Multiple Choice

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 issues.
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 $100 million.
IV. Once bonds have been privately placed,the original buyers must hold the bonds until maturity.

• A)I only
• B)I and III only
• C)I,II,and III only
• D)I,III,and IV only
• E)I,II,III,and IV

---

Definitions:

Rate of Return

A measure of the profit or loss on an investment over a specific period, expressed as a percentage of the investment's initial cost.

Minimum Required Rate

The lowest return rate necessary for an investment to be considered acceptable.

Net Present Value

Net Present Value (NPV) is a calculation used to determine the current value of a series of future cash flows, taking into account a specified rate of return.

Required Rate

Often referred to as the discount rate or required rate of return, it is the minimum return an investor expects to receive for investing in a project or business.