Long-term bonds that are unsecured obligations of a company are called:
A)Indentures.
B)Debentures.
C)Mortgage bonds.
D)Bearer bonds.

Question

Quizplus · Accepted Answer

Debentures are long-term bonds that are unsecured obligations of a company, meaning they are not backed by specific assets or collateral. Indentures refer to the legal documents outlining the terms and conditions of a bond issue, including the repayment schedule and interest rate. Mortgage bonds are backed by specific assets, such as real estate, and bearer bonds are bonds that are owned by whoever is in physical possession of them.

Long-Term Bonds That Are Unsecured Obligations of a Company Are