What is difference between mezzanine debt and senior debt

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Reference no: EM132072346

1. What is the difference between mezzanine debt and senior debt? Why use mezzanine debt to buy a shopping centre? Why use senior debt to buy a shopping centre?

2. Two bonds are available for purchase in the financial markets. The first bond is a 5 year, $1000 bond that pays an annual coupon of 10%. The second bond is a 5 year, $1000 zero coupon bond.

What is the duration of these bonds two years in the future, if the YTM remains at 8%?

Reference no: EM132072346

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