How much is the selling concession per bond in a municipal bond offering?

In a municipal bond offering, the selling concession per bond typically represents the amount that an underwriter or broker-dealer receives for selling the bonds on behalf of the issuer. This compensation is usually expressed as a specific dollar amount per bond sold, which incentivizes the underwriters to effectively market the bonds.

In this instance, a selling concession of $5.00 per bond is a common figure associated with municipal bond offerings, especially for larger deals or when dealing with competitive underwriting situations. This amount reflects the typical market conditions and compensates brokers for their efforts in distributing the bonds, covering both the marketing expenses and the risk they take in holding the bonds before they are sold to investors.

Understanding this selling concession is essential for those involved in the municipal bond market, as it affects the overall pricing structure for the bonds and the financial arrangements among issuers, underwriters, and investors. The correct answer reflects a standard industry practice that aligns with common pricing strategies used in municipal finance.