When comparing debentures and unsecured notes,it can be said that:
A)they are identical securities.
B)a debenture holder is an unsecured creditor whereas an unsecured note holder is a secured creditor.
C)both are an example of unsecured debt.
D)a debenture holder is a secured creditor whereas an unsecured note holder is an unsecured creditor.

Question

Quizplus · Accepted Answer

A debenture is typically a type of debt instrument that is secured by the issuer's general creditworthiness and reputation, making the debenture holder a secured creditor. In contrast, an unsecured note is not backed by any collateral, making the note holder an unsecured creditor.

When Comparing Debentures and Unsecured Notes,it Can Be Said That