Which of the following is backed by shares and bonds of other companies?
A)Collateral trust bond
B)Debenture bond
C)Mortgage bond
D)Convertible bond

Question

Quizplus · Accepted Answer

A collateral trust bond is backed by the shares and bonds of other companies. The issuing company deposits securities with a trustee, who holds them as collateral for the bondholders. This provides an added layer of security for investors. Debenture bonds are not backed by any collateral, and mortgage bonds are secured by real estate. Convertible bonds can be converted into a predetermined number of shares of the issuing company's stock.

Which of the Following Is Backed by Shares and Bonds