A bond in which no assets support the corporations' obligation to repay the face value of the bond is called a(n) ________ bond?

Question

Quizplus · Accepted Answer

Unsecured bonds, also known as debentures, are bonds that are not backed by specific collateral, meaning the issuer's obligation to repay the bond is not supported by any specific assets. Instead, repayment is based on the issuer's general creditworthiness.

A Bond in Which No Assets Support the Corporations' Obligation