Collateral Agreements for a Note or Bond Can

question 63

Multiple Choice

Collateral agreements for a note or bond can:

• A)Reduce the risk of loss in comparison with unsecured debt.
• B)Increase the risk of loss in comparison with unsecured debt.
• C)Have no effect on risk.
• D)Reduce the issuer's assets.
• E)Increase total cost for the borrower.

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