Asked by Casey Snyder on May 16, 2024
Verified
A debenture bond is an unsecured bond which is issued against the general credit of the borrower.
Debenture Bond
A type of debt instrument not secured by physical assets or collateral but backed only by the issuer's creditworthiness and general reputation.
Unsecured Bond
A bond that is not backed by collateral or specific assets and is solely based on the issuer's creditworthiness.
- Discern between the various kinds of debt instruments, namely debenture bonds, mortgages payable, and notes payable.
Verified Answer
LA
Lindsey AlfredMay 20, 2024
Final Answer :
True
Explanation :
A debenture bond is not secured by specific collateral, but rather based on the overall creditworthiness of the borrower.
Learning Objectives
- Discern between the various kinds of debt instruments, namely debenture bonds, mortgages payable, and notes payable.
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