Clearview Corporation, a company that deals mainly with the financing and distribution of music, issues debt with a maturity of 15 years. In the case of bankruptcy, holders of this debt will have claim to the intellectual property of Clearview. Which of the following best describes this type of corporate debt?

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An asset-backed bond is a type of corporate debt that is backed by specific assets or collateral. In this case, the intellectual property of Clearview Corporation would be the collateral that the holders of the debt would have claim to in the event of bankruptcy. A mortgage bond is backed by real estate, a note refers to a shorter term debt instrument, and a debenture is a type of unsecured corporate bond.

Clearview Corporation, a Company That Deals Mainly with the Financing