Asked by BRANDI PRINCE on May 16, 2024
Verified
Corporate bonds are a diverse group and often vary based on the _____ that backs it.
A) market
B) value
C) collateral
D) company
Collateral
An asset or property that a borrower offers as a way for a lender to secure the loan, which can be seized if the loan is not repaid according to terms.
Corporate Bonds
Debt securities issued by corporations to raise capital, with the promise to repay the principal along with interest on specified dates.
- Understand the basic characteristics and types of bonds.
Verified Answer
SU
Salah UsmanMay 22, 2024
Final Answer :
C
Explanation :
Corporate bonds can vary based on the collateral that backs them, which provides security to the bondholders in case the issuing company defaults on its payment obligations.
Learning Objectives
- Understand the basic characteristics and types of bonds.