Asked by Yuleisy Garcia on Jun 09, 2024
Verified
Bonds that have specific assets of the issuer pledged as collateral are
A) secured bonds.
B) callable bonds.
C) convertible bonds.
D) debenture bonds.
Secured Bonds
Bonds backed by specific assets as collateral to ensure repayment in case of issuer default.
Specific Assets
Assets identified and designated for a particular purpose or project, often distinguished from general or unspecified assets.
- Master the range of bond varieties, including term bonds, secured versus unsecured bonds, as well as callable and convertible bonds.
Verified Answer
MM
Mikus McKayJun 12, 2024
Final Answer :
A
Explanation :
Bonds that have specific assets pledged as collateral are often called secured bonds. The collateral can be in the form of property, equipment, or financial assets that belong to the issuer. If the issuer defaults on the bonds, the bondholders have a legal claim to the collateral in order to recover their investment.
Learning Objectives
- Master the range of bond varieties, including term bonds, secured versus unsecured bonds, as well as callable and convertible bonds.