Input-output (I-O) feedback linearization suffers from a number of restrictions which have limited its use in model-based predictive control. Some of these restrictions do not apply to the case of bilinear systems, but problems with input constraints and unstable zero dynamics persist. This paper overcomes these difficulties by means of an interpolation strategy. Involved in this interpolation is a feasible and stabilizing trajectory, which is computed through the use of invariant feasible sets, and a more aggressive trajectory, which can be chosen to be either the unconstrained optimal trajectory or any alternative one.