Ashlynn recently purchased a bond from a large corporation. The corporation is using proceeds from the bond sale to help pay for a new research facility. The corporation did not put up any of its assets as collateral, but Ashlynn still went ahead with the purchase since she believes the corporation is trustworthy and reliable. Ashlynn most likely purchased a(n) ________ bond.
A) general obligation
B) investment-grade
C) secured
D) speculative-grade
E) unsecured

Question

Quizplus · Accepted Answer

Ashlynn purchased an unsecured bond, which means the bond is not backed by any specific collateral but rather by the issuer's creditworthiness.

Ashlynn Recently Purchased a Bond from a Large Corporation