Which of the following expenses can be capitalized within a bond issue?

The option highlighting bond counsel fees as a capitalizable expense within a bond issue is correct because these fees are directly associated with the issuance of the bonds. Bond counsel helps ensure that the bonds are legally valid and that the issuer complies with all applicable laws and regulations. This service is essential for the proper execution of the bond issuance and directly contributes to the preparation and finalization of the bond documentation.

In contrast, other expenses listed typically do not meet the criteria for capitalization. Marketing costs incurred to attract new investors are considered promotional and operational in nature, rather than an investment in the bond's long-term value. Operational expenses of the issuer are ongoing costs related to running the organization and do not relate directly to the bond issue itself. Similarly, administrative costs of the underwriter are also considered necessary for the underwriting process but fall under routine operational expenses rather than something that adds value to the bond's issuance process, thus not capitalizable in the context of the bond.