easy · Debt Capital Markets
Which of the following is a common feature of a bridge loan's pricing structure over time?
- The interest rate is fixed at issuance and can never be changed by the lenders.
- The interest is only paid if the company's stock price increases.
- The interest rate 'steps up' or increases at pre-defined intervals (e.g., every 90 days) until the loan is refinanced.
- The interest rate decreases every six months to reward the borrower for staying in the loan.
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