Vidyalelo
Management · Q258

International Finance and Treasury

Graduate and Post Graduate · Management · question 258

Q258

As compared to publicly placed issues, privately placed bonds are issued for

A.
lower paid interest rates
B.
higher paid interest rates
Answer
C.
registered interest rates
D.
unregistered interest rates

Answer: Option B

Solution

Answer: Option B
Solution:
As compared to publicly placed issues, privately placed bonds are issued for higher paid interest rates. Privately placed securities are those that are sold directly to institutional investors instead of being offered for sale to the general public. Privately placed securities are usually bond issues, including corporate bonds; they also include other debt instruments as well as equity securities.