Asked by Denise Maxim on Apr 30, 2024
Verified
A bond that has collateral to protect the bondholder is referred to as a debenture bond.
Collateral
Assets pledged by a borrower to secure a loan or other credit, and subject to seizure by the lender if the loan is unpaid.
Bondholder
An investor or owner of bonds issued by a corporation or government entity, entitled to receive interest payments and the return of principal.
- Recognize the elements and importance of financial contracts between lenders and corporations.
Verified Answer
FL
Farjana LavluMay 03, 2024
Final Answer :
False
Explanation :
A debenture bond is a type of bond that does not have any collateral or security backing it, making it a riskier investment option for bondholders.
Learning Objectives
- Recognize the elements and importance of financial contracts between lenders and corporations.
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