Chartered Financial Analyst Level 1
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Which of the following statements about mezzanine debt in private debt is most accurate?
A
Mezzanine debt is subordinated to senior secured debt but senior to equity in the borrower's capital structure.
B
Mezzanine debt is less risky than senior secured debt issued by the same company.
C
Mezzanine debt may include additional features such as warrants or conversion rights to provide equity participation to lenders.