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

Question

Quizplus · Accepted Answer

Debenture bonds are not backed by any collateral or specific assets of the issuing corporation. Instead, they rely on the general creditworthiness and reputation of the corporation to attract investors. Therefore, option D is the correct answer.

Debenture Bonds Are