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Collateral for a note or bond can: Reduce the risk of loss in comparison with unsecured debt. Increase the risk of loss in comparison with

Collateral for a note or bond can:

Reduce the risk of loss in comparison with unsecured debt.

Increase the risk of loss in comparison with unsecured debt.

Have no effect on risk.

Reduce the issuer's assets.

Increase total cost for the borrower.

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