What term is used for bonds that have specific assets pledged as collateral?

(a) Callable bonds.

(b) Convertible bonds.

(c) Secured bonds.

(d) Discount bonds.

. Cuso Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a premium, this indicates that:

(a) the contractual interest rate exceeds the market interest rate.

(b) the market interest rate exceeds the contractual interest rate.

(c) the contractual interest rate and the market interest rate are the same.

(d) no relationship exists between the two rates.