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CTP · Question #344
(Topic 4) XYZ Company is interested in issuing a bond to finance a new venture opportunity. The new venture is not expected to generate any cash flow for several years. Because of this, XYZ Company…
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Question
- (Topic 4)
XYZ Company is interested in issuing a bond to finance a new venture opportunity. The new venture is not expected to generate any cash flow for several years. Because of this, XYZ Company would prefer to issue a bond that does not require interest payments. What type of bond should XYZ Company issue?
Options
- AZero-coupon bond
- BMunicipal bond
- CTender option bond
- DHigh-yield bond
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