A ________ Is a Hybrid Between a Conventional Loan and a Bond;

question 39

Multiple Choice

A ________ is a hybrid between a conventional loan and a bond; at its heart it is a bond, but its terms are tailored to the borrower's individual needs, as a loan would be.

• A) private placement
• B) industrial revenue bond
• C) 504 loan
• D) zero coupon bond

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Definitions:

Fixed Expenses

Financial obligations that stay uniform in spite of changes in manufacturing or sales figures, like leasing expenses, salaries for workers, and insurance outlays.

Operating Leverage

A financial concept that measures a company's fixed costs as a percentage of its total costs, indicating how a change in sales will impact profits due to fixed expenses.

Wire Strippers

A hand tool used to strip the insulation from electric wires.

Manufacturer

A person or company that makes goods for sale, typically involving machinery and labor.