When specific assets such as land, plant, or equipment are pledged as collateral, what is the term for the debt issue?
A)Debenture
B)Mortgage bond
C)Bond
D)Unsecured debt

Question

Quizplus · Accepted Answer

When specific assets such as land, plant, or equipment are pledged as collateral, the term for the debt issue is a mortgage bond. Debentures are unsecured debt, meaning there is no collateral backing the debt issue. Bonds can be either secured or unsecured, so it is too general of a term to be the correct answer.

When Specific Assets Such as Land, Plant, or Equipment Are