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Which of the following is FALSE about debt issuance? A) Private debts include bank loans and...

  1. Which of the following is FALSE about debt issuance?

A) Private debts include bank loans and private placements.

B) Corporate bond issuance is similar with equity issuance, which requires hiring underwriter(s).

C) A company cannot issue corporate bonds unless it becomes public listed first.

D) Bonds are typically issued with a face value of $1,000 per contract.

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Answer:

Option - A

Because, bank loans involve issuance of money through established instutions whereas private placements means issuance of private securities and not bank loans

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