Dick Dowen just bought a bond that is only secured by the reputation of the issuer.What type of bond has Dick purchased?

Question

Quizplus · Accepted Answer

A debenture is a type of bond that is not secured by any specific asset or collateral but rather relies solely on the issuer's creditworthiness and reputation to repay the bondholder. This is in contrast to a mortgage bond, which is secured by a specific property, or a convertible bond, which can be converted into stock. The terms "callable" and "high-yield" are not relevant to the security of the bond, but rather refer to other characteristics such as the issuer's ability to redeem the bond early or the bond's credit rating.

Dick Dowen Just Bought a Bond That Is Only Secured