MSG Corporation issued $111,000 of 3-year, 5% bonds outstanding on December 31, 2020 for $114,000. The bonds pay interest annually and MSG uses straight-line amortization. On May 1, 2021, $11,100 of the bonds were retired at 118. As a result of the retirement, MSG will report: (Do not round intermediate calculations and round final answer to nearest whole dollar.) a. a $1,698 loss.
b. a $1,731 loss.
c. a $3,396 loss.
d. a $3,396 gain.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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