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      Question

      Which financing instrument is commonly used to bridge

      the gap between senior debt and equity in project financing?
      A Term loans Correct Answer Incorrect Answer
      B Trade credit Correct Answer Incorrect Answer
      C Mezzanine finance Correct Answer Incorrect Answer
      D Government subsidy Correct Answer Incorrect Answer
      E Convertible debentures Correct Answer Incorrect Answer

      Solution

      Mezzanine finance is subordinated debt with equity-like features, filling the funding gap between senior secured loans and equity capital.

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