Which of the following statements best describes the main difference(s)between corporate bonds and debentures?
A)Corporate bonds are typically issued as secured notes.
B)The trust deed is less restrictive than a debenture trust deed.
C)Corporate bonds are placed privately with institutional investors rather than issued publicly.
D)The trust deed is less restrictive than a debenture trust deed and corporate bonds are placed privately with institutional investors rather than issued publicly.

Question

Quizplus · Accepted Answer

Corporate bonds can be issued as secured or unsecured notes, but debentures are always unsecured. The trust deed for debentures is more restrictive than the trust deed for corporate bonds. Additionally, while corporate bonds may be privately placed with institutional investors, they can also be issued publicly.

Which of the Following Statements Best Describes the Main Difference(s)between