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Minden Co. has unsecured debt of $1,500,000 that carries interest at 10%. If Minden Co. was able to offer land and buildings with an appraised

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Minden Co. has unsecured debt of $1,500,000 that carries interest at 10%. If Minden Co. was able to offer land and buildings with an appraised value of $2 million as security for the debt, the interest rate should a) decrease because of reduced risk b) decrease because of higher profits c) decrease because of a higher interest cover ratio d) increase because of risk e) none of the above

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