Which One of the Following Statements Is Correct Concerning the Issuance

question 25

Multiple Choice

Which one of the following statements is correct concerning the issuance of long-term debt?

• A)A direct long-term loan has to be registered with the SEC.
• B)Direct placement debt tends to have more restrictive covenants than publicly issued debt.
• C)Distribution costs are lower for public debt than for private debt.
• D)It is easier to renegotiate public debt than private debt.
• E)Wealthy individuals tend to dominate the private debt market.