In a negotiated municipal bond underwriting all of the following are true EXCEPT:
A) the underwriters may also be financial advisors to the municipality and receive both advisory fees and underwriting fees.
B) the municipality appoints an investment banker or broker/dealer to underwrite the offering.
C) the underwriter works with the issuer to establish the interest rate.
D) the underwriter works with the issuer to establish the offering price.
Answer: A) the underwriters may also be financial advisors to the municipality and receive both advisory fees and underwriting fees.