One funding source under consideration is the issuance of $150 million worth of corporate bonds. A financial advisor predicted that in order for the fast growing company to attract investors, it would have to put up collateral to back up the bond issue. The type of bond the financial advisor suggests is

Question

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Secured bonds are bonds that are backed by some tangible asset that is pledged to the bondholder if interest is not paid or principal is not paid back.

One Funding Source Under Consideration Is the Issuance of $150