A contract pledging title to assets as security for a node or bond is known as (an): Sinking fund. Mortgage. Equity. Lease. Indenture. A disadvantage of bond financing is: Bonds do not affect owner's control. Interest on bonds is tax deductible. Bonds can increase return on equity. It allows firms to trade on the equity. Bonds pay periodic interest and the repayment of par value at maturity. An advantage of bonds is: Bonds do not affect owner control. Bonds require payment of par value at maturity. Bonds can decrease return on equity Bonds payments can be burdensome when income and cash flow are low Bonds require payment of periodic interest