Asked by razan osman on Jul 20, 2024
Verified
A bond that is considered unsecured is referred to as a
A) debenture.
B) sinking fund bond.
C) senior bond.
D) callable bonD.
Unsecured
Pertaining to loans or debts that are not backed by collateral, making them riskier for lenders.
Debenture
A type of debt instrument that is not secured by physical assets or collateral but is based on the issuer's creditworthiness and reputation.
- Familiarize oneself with the definitions and functions of various financial instruments and securities, namely commercial paper and bonds.
Verified Answer
AH
Amber HrdlickaJul 22, 2024
Final Answer :
A
Explanation :
A debenture is an unsecured bond, meaning it is not backed by collateral.
Learning Objectives
- Familiarize oneself with the definitions and functions of various financial instruments and securities, namely commercial paper and bonds.
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