The Mechanics of a Bought Deal Are That ________

Multiple Choice

The mechanics of a bought deal are that ________.

A) the lead manager or a group of managers offers a potential issuer of debt securities a firm bid to purchase an undetermined amount of the securities with an interest (coupon) rate and maturity to be announced later.
B) the issuer is given a month or more to accept or reject the bid.
C) if the bid is rejected, the underwriting firm has bought the deal.
D) the underwriter can sell the securities to other investment banking firms for distribution to their clients and/or distribute the securities to its clients.