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    Question

    In finance, what does the term Mezzanine Debt

    mean?
    A A loan fully secured by collateral Correct Answer Incorrect Answer
    B An unsecured, subordinated, high-yield debt between equity and senior debt Correct Answer Incorrect Answer
    C A government-subsidized farm loan Correct Answer Incorrect Answer
    D A short-term trade credit Correct Answer Incorrect Answer
    E A type of sovereign bond Correct Answer Incorrect Answer

    Solution

    Mezzanine finance is a hybrid form of capital, ranking below senior debt but above equity. It carries high risk and high return, often with equity conversion rights.

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