QUESTION 3 What type of bond has specific assets pledged as collateral? Convertible Callable Secured Unsecured QUESTION 4 One difference between selling stock and selling bonds is that: Stock represents ownership, while bonds represent debt. Common Stock has a fixed return to the investor and bonds have a variable return. Dividends must be paid on stock, while payment of interest is optional. A company must use the cash proceeds from bonds to expand operations, while there are no restrictions on cash received from stock. QUESTION 5