Asked by Shannon Bubar on Jul 03, 2024
Verified
An unsecured bond is referred to as a(n) :
A) indenture.
B) debenture.
C) mortgage bond.
D) subordinated mortgage bond.
Unsecured Bond
A bond not backed by collateral, relying on the issuer's creditworthiness.
Indenture
A formal legal agreement, contract, or document between two parties, especially one detailing the terms and conditions of a bond or debenture.
Debenture
A type of debt instrument that is not secured by physical assets or collateral but is backed only by the general creditworthiness and reputation of the issuer.
- Identify the functions of bond indentures and their significance within the bond market.
Verified Answer
Learning Objectives
- Identify the functions of bond indentures and their significance within the bond market.
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