CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

A company is considering issuing bonds to finance a project. The project is not expected to generate any income during the development phase, which may last for a few years. Which type of bonds would the company most prefer?

A. Credit-linked coupon bonds
B. Deferred coupon bonds
C. Inverse FRNs
Correct Answer: B

Deferred coupon bonds can delay interest payments when there's no cash inflow from the project.

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