Because of the added security of collateral,the interest rates on ________ bonds are usually lower than interest rates on unsecured debenture bonds.
A)debenture
B)mortgage
C)indenture
D)preemptive
E)subordinated debenture

Question

Quizplus · Accepted Answer

Mortgage bonds are secured by a specific type of collateral, typically real estate, which provides added security to lenders. This additional security generally results in lower interest rates compared to unsecured debenture bonds, which do not have the benefit of being backed by specific assets.

Because of the Added Security of Collateral,the Interest Rates on ________