Asked by Caitlyn Pierson on Jun 23, 2024
Verified
__________, usually called debentures, have only the obligation of the corporation behind them.
A) Secured bonds
B) Income bonds
C) Unsecured bonds
D) None of these are correct.
Unsecured Bonds
Bonds issued without collateral, relying solely on the issuer's creditworthiness.
Debentures
A type of long-term debt instrument used by corporations and governments to raise funds, not secured by physical assets or collateral.
- Gain an understanding of the laws governing corporate bonds, such as callable and convertible bonds, and their impact on corporate financial strategies.
Verified Answer
JI
Jihan IslamJun 26, 2024
Final Answer :
C
Explanation :
Unsecured bonds, often referred to as debentures, are bonds that do not have any collateral backing them. Instead, they are backed solely by the creditworthiness and reputation of the issuing corporation.
Learning Objectives
- Gain an understanding of the laws governing corporate bonds, such as callable and convertible bonds, and their impact on corporate financial strategies.
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