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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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