ESSENTIALS CORPORATE FINANCE + CNCT A.
ESSENTIALS CORPORATE FINANCE + CNCT A.
9th Edition
ISBN: 9781259968723
Author: Ross
Publisher: MCG CUSTOM
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Chapter 15, Problem 3CTCR
Summary Introduction

To think critically about: The direct costs of the noninvestment grade bonds are higher than the investment-grade issues.

Introduction:

The grade that is provided to the bonds and that shows its credit quality is termed as the bond ratings. The public trade incurs certain costs at the time of issuing new securities. It also includes various expenditures like the registration fees, legal fees, and the underwriting fees. Thus, these costs are referred as the flotation costs.

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