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Collateral Agreements for a Note or Bond Can

Question 175

Multiple Choice

Collateral agreements for a note or bond can:


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

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