One Funding Source Under Consideration Is the Issuance of $150

question 298

Multiple Choice

One funding source under consideration is the issuance of $150 million worth of corporate bonds. A financial advisor predicted that in order for the fast growing company to attract investors, it would have to put up collateral to back up the bond issue. The type of bond the financial advisor suggests is

• A) debenture bonds.
• B) asset bonds.
• C) secured bonds.
• D) preferred bonds.