Debenture bonds are
A) bonds that have a single maturity date.
B) bonds secured by specific assets of the issuing corporation.
C) issued only by the federal government.
D) issued on the general credit of the corporation and do not pledge certain assets as collateral.

Question

Quizplus · Accepted Answer

Debenture bonds are issued on the general credit of the corporation and do not pledge certain assets as collateral. Option A is incorrect because bond issues can have multiple maturity dates. Option B is incorrect because secured bonds are backed by specific collateral assets. Option C is incorrect because debenture bonds can be issued by corporations, not just the federal government.

Debenture Bonds Are