When underwriting a commercial paper issue,an investment bank's fee will usually be:
A) 10% per annum.
B) 1% per annum.
C) 0.1% per annum.
D) 0.01% per annum.

Question

Quizplus · Accepted Answer

Commercial paper issues typically have very low underwriting fees, often around 0.1% per annum, due to their short-term nature and the relatively low risk involved for the underwriters.

When Underwriting a Commercial Paper Issue,an Investment Bank's Fee Will