Corporate bonds are a diverse group and often vary based on the ______ that backs it.
A) collateral
B) value
C) market
D) company

Question

Quizplus · Accepted Answer

Corporate bonds can be backed by different forms of collateral, such as physical assets or future revenue streams. This can greatly impact the risk and value of the bond. Therefore, the collateral is a key factor in differentiating corporate bonds from one another. The other options (value, market, and company) can also impact the characteristics of a corporate bond, but they are less fundamental than the backing collateral.

Corporate Bonds Are a Diverse Group and Often Vary Based