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1 FINANCE MCQS

Compared to public issues, the interest premiums on privately placed issues over time have ____________?

  • Increased
  • Increased flotation rate
  • Decreased
  • Zero-interest coupon
Correct Answer: C. Decreased

Detailed Explanation

Over time, interest premiums on privately placed issues have decreased compared to public issues, making private placements a more attractive financing option for companies.

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