Taking into account the risk/return trade-off, it would stand to reason that a secured bond holds a lower interest rate than an unsecured bond.

Name: Taking into account the risk/return trade-off, it would stand to reason that a secured bond holds a lower interest rate than an unsecured bond.
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Secured bonds are backed by collateral, thus are a less risky investment than an unsecured bond. In order for corporations to attract investors to unsecured bonds, they generally must pay a higher interest rate.

Taking into Account the Risk/return Trade-Off, It Would Stand to Reason