The term used for bonds that are unsecured as to principal is
A) mortgage bonds.
B) debenture bonds.
C) indebenture bonds.
D) callable bonds.

Question

Quizplus · Accepted Answer

Debenture bonds are unsecured bonds that rely on the creditworthiness of the issuer rather than being backed by specific assets, such as mortgage bonds. Indebenture bonds is not a commonly used term. Callable bonds are bonds that can be redeemed by the issuer before their maturity date.

The Term Used for Bonds That Are Unsecured as to Principal