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For which of the following reasons may a new bond issue a warrant?
To increase the issue's price to the public
To compensate the underwriter for handling the issue
To increase the spread to the underwriter
To increase the issue's attractiveness to the public
Too bad, so sad! Try again!
Warrants are used as sweeteners to increase a new issue's attractiveness to the public.
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09
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For which of the following reasons may a new bond issue a warrant?
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