Clearview Corporation, a company that deals mainly with the financing and distribution of music, issues debt with a maturity of 15 years. In the case of bankruptcy, holders of this debt will have claim to the intellectual property of Clearview. Which of the following best describes this type of corporate debt?

Question

Quizplus · Accepted Answer

This type of debt is backed by the intellectual property of the company, which is considered an asset. Therefore, it is classified as an asset-backed bond.

Clearview Corporation, a Company That Deals Mainly with the Financing