As a general rule, a company's debentures have higher required interest rates than its mortgage bonds because mortgage bonds are backed by specific assets while debentures are unsecured.

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This is because mortgage bonds are backed by specific assets, while debentures are unsecured and do not have any assets as collateral. Therefore, debentures are considered more risky for investors, and higher interest rates are required to compensate for that risk.

As a General Rule, a Company's Debentures Have Higher Required