Hyannas Inc. has recently arranged financing for its planned expansion. The $5,000,000 bank loan is secured against

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Hyannas Inc. has recently arranged financing for its planned expansion. The $5,000,000 bank loan is secured against inventory, receivables, and certain capital assets while the second loan for $2,000,000 is unsecured. Which loan would you expect to have a higher interest rate? Explain.

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