The reason for the noninvestment-grade bonds having higher direct costs than investment grade issues. Bond: Bond refers to the securities, which are traded in the public to raise the capital when needed. It is an investment with a fixed income, where an investor gives money to an entity or individual for a specified period of time at a fixed rate.

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Chapter 20, Problem 3CQ

Summary Introduction

To explain: The reason for the noninvestment-grade bonds having higher direct costs than investment grade issues.

Bond:

Bond refers to the securities, which are traded in the public to raise the capital when needed. It is an investment with a fixed income, where an investor gives money to an entity or individual for a specified period of time at a fixed rate.

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