A corporate bond that is secured by various assets of the issuing firm is called a(n) ____________ bond.
A) debenture
B) mortgage
C) indenture
D) preemptive
E) treasury

Question

Quizplus · Accepted Answer

A mortgage bond is a type of corporate bond that is secured by specific assets of the issuing company, such as property or equipment. This provides additional security for investors in case the company defaults on the bond. Debentures, on the other hand, are unsecured bonds. Indenture is a legal agreement between the issuer and investor, outlining the terms and conditions of the bond. Preemptive refers to the right of existing shareholders to buy new shares before they are offered to the public. Treasury bonds are issued by the government.

A Corporate Bond That Is Secured by Various Assets of the Issuing