To provide security to creditors and to reduce interest costs,bonds and notes payable can be secured by:
A)Safe deposit boxes.
B)Mortgages.
C)Equity.
D)The FASB.
E)Debentures.

Question

Quizplus · Accepted Answer

Bonds and notes payable can be secured by mortgages, which provide a form of collateral for the lender in the event of default by the borrower. This reduces the risk for the creditors, making it easier to obtain financing and potentially reducing interest costs. Options A (safe deposit boxes), C (equity), D (FASB), and E (debentures) are not typically used as forms of security for bonds and notes payable.

To Provide Security to Creditors and to Reduce Interest Costs,bonds