Which of the following bonds is typically not secured?
A)collateral trust bond
B)mortgage bond
C)debenture
D)equipment trust certificate

Question

Quizplus · Accepted Answer

A debenture is a type of bond that is not secured by assets or collateral. This means that if the issuer defaults, bondholders will not have specific assets to claim to recover their investment. In contrast, collateral trust bonds are secured by specific collateral or assets, mortgage bonds are secured by real estate, and equipment trust certificates are secured by specific equipment or other tangible assets.

Which of the Following Bonds Is Typically Not Secured