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Basic Question 0 of 11

In general, for a start-up company, debt financing is:

A. attractive to its lenders.
B. appealing to the company.
C. neither A nor B is correct.
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User Contributed Comments 2

User Comment
aishaoh what? i thought debt financing is cheaper than equity???
breh @aishaoh: not always. for such companies there's no positive income and debt financing could be very expensive.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

explain how interest rate volatility affects the value of a callable or putable bond;

explain how changes in the level and shape of the yield curve affect the value of a callable or putable bond;

calculate the value of a callable or putable bond from an interest rate tree;

CFA® 2025 Level II Curriculum, Volume 4, Module 28.