Which one of the following terms is defined as debt issued without specific collateral pledged as security?

Question

Quizplus · Accepted Answer

Unsecured debt is debt that is not backed by specific collateral, such as a mortgage or a car loan. This makes it riskier for the lender, but it also allows the borrower to obtain funds without having to put up specific assets as security. Indenture refers to the legal agreement between the bond issuer and the bondholders. A vanilla bond is a basic, straightforward bond with no special features or options. A naked bond is not a common term in finance and does not have a clear definition. A risk-free bond does not exist in reality, but refers to a hypothetical bond with zero risk of default.

Which One of the Following Terms Is Defined as Debt