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 IASB.
E) Debentures.

Question

Quizplus · Accepted Answer

Bonds and notes payable can be secured by mortgages, which are legal agreements that allow creditors to take possession of a borrower's assets, such as property or equipment, in the event that the borrower defaults on the loan. This provides security to the creditors and reduces the interest costs, as the risk of default is lower with a secured loan.

To Provide Security to Creditors and to Reduce Interest Costs