Private Placement Bond Issues

question 3

Multiple Choice

Private placement bond issues

• A)do not have to meet the strict information disclosure requirements of publicly traded issues.
• B)have auditing requirements that do not adhere to publicly traded issues.
• C)meet the strict information disclosure requirements of publicly traded issues, but have larger minimum denominations.
• D)none of the above

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Definitions:

Rate of Return

Variation in the worth of an investment over a specific interval, depicted as a percentage of the investment's initial outlay.

Discount Rate

The interest rate used to discount future cash flows to their present values.

Present Value

The current financial assessment of a sum of money in the future or ongoing cash flows, based on a specific rate of return.

Cash Flows

The movement of money into and out of a business, project, or financial product.