Bonds that are backed by collateral are:
A)unsecured bonds.
B)convertible bonds.
C)callable bonds.
D)secured bonds.

Question

Quizplus · Accepted Answer

Secured bonds are backed by collateral, which means that in the case of default, the bondholders have a claim on the assets used as collateral. Unsecured bonds, on the other hand, do not have any collateral backing and are based solely on the issuer's creditworthiness. Convertible bonds allow investors to convert their bonds into a specified number of common stock shares, while callable bonds give the issuer the right to redeem the bond before it matures.

Bonds That Are Backed by Collateral Are