When One Invests in a Private Placement Bond Offering,they Can

question 48

Multiple Choice

When one invests in a private placement bond offering,they can generally expect to receive a slightly higher yield than on public bond offerings,because:

• A)Of a very large secondary market for the private placement bonds
• B)Of a very small secondary market for the private placement bonds
• C)Of the large size of the borrowing firm in the private placement
• D)There is less risk in a private placement than in a public one

---

Definitions:

Gross Profit Ratio

A financial metric expressing the gross profit as a percentage of net sales, indicating the efficiency of production or service delivery.

Inventory Destroyed

Refers to stock items that have been damaged, expired, or cannot be sold, leading to a loss for the business.

Typical Gross Profit

The average gross profit a company makes after subtracting the cost of goods sold from its net sales.

FOB Shipping

Free On Board Shipping, a term used in shipping agreements to specify which party (buyer or seller) pays for shipping costs and when the ownership of the goods transfers.