The spread between a debenture and a mortgage bond is the premium in interest rate that must be paid on a debenture.Why?
A) It is an unsecured bond and thus has greater risk of loss .
B) It is a secured bond with a lower level of risk of loss..
C) It is a secured debenture with a greater level of risk of loss..
D) None of the above are correct.
Correct Answer:
Verified
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