As compared to public issues, the interest premiums on privately placed issues overtime have _____________?
Correct answer: C. decreased
- A. increased
- B. increased floatation rate
- C. decreased
- D. zero interest coupon
Explanation
Interest premiums on privately placed issues have generally decreased over time as the private-placement market became more competitive and efficient. The other choices describe financing terms rather than the historical trend in the premium.
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