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Company PLU decides to issue bond to finance its investment in a project. However, the project is only expected to start to generate income from
- Company PLU decides to issue bond to finance its investment in a project. However, the project is only expected to start to generate income from year 4 onwards. Considering this, which of the following bonds is favoured by the company? Please explain your answer.
[3 marks]
- Plain vanilla bond
- Step-up coupon bond
- Deferred coupon bond
- Credit linked coupon bond
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Finance
Authors: Angelico Groppelli, Ehsan Nikbakht
7th Edition
1438010362, 9781438010366
