Which of the following are bonds that are backed only by the earning capacity and creditworthiness of the firm that issues them?

Question

Quizplus · Accepted Answer

Debentures are unsecured bonds that are backed only by the creditworthiness and earning capacity of the issuing corporation. Callable bonds can be redeemed by the issuer before maturity, while junk bonds have a higher risk of default and lower credit rating. Coupon bonds simply pay interest to the bondholders, but the security they offer can vary.

Which of the Following Are Bonds That Are Backed Only