Which is not a component of the spread as compensation to the underwriter in a negotiated bond issue?

In a negotiated bond issue, the spread, which compensates the underwriter, primarily consists of components like the underwriting discount, management fee, and issuance costs. The coupon rate, on the other hand, represents the interest rate that will be paid to bondholders and is determined separately based on market conditions, issuer credit quality, and other factors regarding the bond’s structure.

The coupon rate does not serve as a direct component of the compensation to the underwriter. Instead, it reflects the issuer's obligation to pay interest to investors, while the spread is primarily the financial remuneration to the underwriter for services like marketing and selling the bonds. Hence, identifying the coupon rate as not being a part of the spread aligns with the understanding of how negotiated bond issues are structured and how compensation for underwriters is calculated.