Which one of the following bonds is considered unsecured?
A)$50,000, 8%, debenture bonds
B)$100,000, 12%, restricted bonds
C)$20,000, 10%, five-year callable bonds
D)$40,000, 6%, collateralized bonds

Question

Quizplus · Accepted Answer

Debenture bonds are considered unsecured because they are not backed by any collateral or physical assets; instead, they are backed only by the issuer's creditworthiness and reputation.

Which One of the Following Bonds Is Considered Unsecured