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The Use of Auctions Should Make the Cost of Issuing

Question 44

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The use of auctions should make the cost of issuing bonds cheaper for corporations. Show the expected impact on risk premia for corporate bonds with a graph.
The use of auctions should make the cost of issuing bonds cheaper for corporations. Show the expected impact on risk premia for corporate bonds with a graph.

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Issuing bonds is cheaper so co...

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