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Basic Question 15 of 18

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

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Learning Outcome Statements

describe common cash flow structures of fixed-income instruments

CFA® 2024 Level I Curriculum, Volume 4, Module 2.