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The average construction project takes two or three years. How can the institution pay interest on the bonds before the project is producing revenue?

April 26, 2017average bonds Construction institution pay producing project revenue takes

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The average construction project takes two or three years. How can the institution pay interest on the bonds before the project is producing revenue?

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Interest payable during construction is capitalized, becoming part of the bond issue. It is set aside in a fund for the Trustee to make payments during construction.