Asked by Kendra Grady on Jul 09, 2024
Verified
A(n) ________ is secured only by the reputation of the issuing firm.
A) Unfunded bond.
B) Straight bond.
C) Bearer bond.
D) Registered bond.
E) Debenture.
Debenture
An unsecured loan certificate issued by a company, backed by general credit rather than by specified assets.
Issuing Firm
A company that offers securities to the public or existing shareholders.
Unfunded Bond
A bond issued without a specific reserve fund set aside for its repayment, relying solely on the issuer's general creditworthiness.
- Learn about the basic characteristics and the different categories of bonds.
Verified Answer
CV
Cassie VolpentestaJul 13, 2024
Final Answer :
E
Explanation :
A debenture is a type of debt instrument that is not secured by physical assets or collateral but is backed only by the general creditworthiness and reputation of the issuer.
Learning Objectives
- Learn about the basic characteristics and the different categories of bonds.